What You Need to Know About Security Standards When Accepting Credit Card Payments

Who:

Merchants who accept credit cards (Visa, MasterCard, Discover, American Express, JCB International)

What:

Unauthorized disclosure and use of cardholder data through storage transmission of credit card data -- credit card information used for fraudulent activity

Why:

Compliant -- goes to a Safe Harbor – insurance protects merchant

Noncompliant – vulnerable for law suits, damages, fines

Fines:

Master Card will fine acquirers up to $500,000 plus $25 per card

Visa will fine acquirers up to $500,000 plus charge back items purchased

Cardholders can sue merchants if their information was not protected

Vulnerability:

Carelessness or dishonesty of an employee

Computer savvy thieves hacking into a merchant's network

Minimize Risk:

Verify compliance with truncation of credit card information -- both customer copy and the merchant copy