PRINCETON, N.J. (5/20/14)--Payments processor Heartland Payment Systems has introduced a credit/debit card data security solution to provide merchants with protection against card-present data fraud.
Heartland Secure offers merchants with protection against point-of-sale (POS) intrusions, crimeware, miscellaneous errors, insider misuse and other common sources of card-present data fraud by eliminating the opportunity for criminals to monetize card data.
Offered to Heartland customers for no additional processing fees as part of Heartland's comprehensive solutions, Heartland Secure combines EMV electronic chip card technology, encryption and tokenization.
Heartland customers have had E3 and tokenization for a number of years, with EMV acceptance enabled within the last 12 months. Based on their respective success, the company has combined them into a seamless end-to-end security option called Heartland Secure. Here's how it works.
EMV chip cards fight fraud at the physical point of sale by verifying that the presented card is genuine. The smartcard chip contains dynamic data that is validated in a more secure manner than the static data of a magnetic stripe, which makes the card data harder to counterfeit. Heartland's new POS systems are capable of processing EMV cards, which will be a required standard in the U.S. for most businesses by October 2015. Noncompliant merchants will bear all financial liability for all fraudulent transactions.
Heartland's E3 encryption technology encrypts cardholder information at card swipe, key entry, tap or insertion--so that it is never in readable form to crimeware programs. Card information is always encrypted, and is never transmitted or stored in a useful form.
Tokenization protects card data after a transaction is authorized by substituting a token for a card's number. If a system is compromised and tokens are taken, they have no real value in the outside world. Tokenization is the most effective way of minimizing the PCI compliance footprint, according to the PCI Security Standards Council, an open global forum for the ongoing development, enhancement, storage, dissemination and implementation of security standards for account data protection.
In January 2009, Heartland Payment Systems was the victim of a data breach in which130 million credit and debit cards compromised. As a result, More than 560 financial institutions, including at least 178 credit unions, had to reissue credit and debit cards as a result of the breach at Heartland. Many saw fraudulent charges on cards (News Now April 17, 2011).