Visa axes payment processor after data theft

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Visa axes payment processor after data theft

Antony Savvas

Visa has axed payment processor CardSystems Solutions after its network was breached, compromising the data security of 40 million Visa, MasterCard and American Express customers.

When news broke that remote hackers had broken into the processor’s network in June, the main focus was on MasterCard, which went public on the scandal. But most of the accounts affected were in fact Visa customers.

It is believed that personal details of around 200,000 customers were actually stolen. 

Visa says that CardSystems’ actions since the scandal broke have not been good enough and that it is not confident its security procedures meet Visa’s requirements.

It was found that CardSystems’ previous security failings included storing unprotected customer data taken from the magnetic strips of customer credit cards.

CardSystems said it aimed to show improvements in its security by meeting the requirements of the CISP and SDP standards by 31 August 2005.

It described Visa's decision as disappointing and said it hoped the card giant would reconsider.

CardSystems will continue processing a number of banks’ Visa payments until October, before they have to find another processor. Visa says it will carry out ongoing checks until the full switch.

MasterCard and American Express have yet to make a decision on whether to continue using CardSystems.


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