Heartland Offers Breach Warranty

Jan. 19, 2015

Heartland Offers Breach Warranty Last week at the National Retail Federation’s Big Show in New York City, Heartland Payment Systems unveiled a warranty the company says makes it the first payment processor to protect businesses from losses in the event of a data breach. Merchants that implement Heartland Secure-certified devices and process payments through those devices will be reimbursed for all compliance fines, fees and/or assessments the merchant must pay to the card brands, issuing banks and acquiring bank in the event of a breach.

At the moment, the warranty applies only to card-present merchants, but the company is working on adapting the protection to e-commerce merchants, according to Joe Wysocki, executive director of e-commerce at Heartland Payment Systems.

In the meantime, Heartland will back up the security built into its Heartland Secure payment solution—EMV certification, end-to-end encryption technology and tokenization—with the guarantee.

“Many small business owners aren’t aware of the magnitude of data security breaches or the potential liabilities lurking around the corner. Damage to a company’s reputation can be catastrophic, and the fines can be overwhelming,” said Michael English, executive director of Product Development for Heartland. “By combining EMV, encryption and tokenization, Heartland eliminates clear text-card data from the merchant’s point-of-sale system and network. As we have seen in recent breaches at major retailers and restaurants, it is difficult to maintain a secure network. Through encryption and tokenization, a merchant eliminates clear text card data so if their network is breached, there is no card data to steal and monetize.”