Visa, MasterCard at Center of Lawsuit over PCI Security Standards

What's Next In Payments®
1:54 PM EDT January 12th, 2012

January 12, 2012

Two Utah business owners are suing US Bank after the merchant acquirer attempted to collect on $90,000 in fines imposed by Visa and MasterCard, according to Finextra.

The card companies allege that a lack of stringent payment security at Cisero’s Ristorante and Nightclub resulted in a data breach in which customers’ account details were used later used to facilitate fraudulent transactions.

(Tokenization Report: How to Reduce PCI Compliance Costs)

US Bank withdrew $10,000 from the restaurant’s account and took legal action against owners Stepehen and Cissy McComb in order to collect the outstanding $80,000 in fines.

The owners in their countersuit claim the card industry’s PCI security standards are outdated, and that Visa and MasterCard have yet to offer evidence that the restaurant’s system was attacked. The suit goes on to allege that there was nologic to how the amount of the card companies’ fines were determined, calling them “various shifting numbers based on unexplained calculations”.

“The process is little more than a scheme to extract steep financial penalties from small merchants,” the suit claims.

Click here for more details on the case.

Comments
Also by This Author
What's Hot
Merchant Innovation
Nintendo Brings Contactless Payments To Japan
Mobile Commerce
How Many Mobile Users Actually Shop Online?
B2B Payments
Wealth Management Firm Jumps On The NetSuite Train
Company Spotlight
MasterCard Partners With SHAZAM To Introduce EMV Debit
View All Articles ››
You May Also Like
Company Spotlight
Different mPOS Strokes for Different mPOS Folks
International
Digital River Offers A Sneak Peak At Mobile eCommerce Trends
Mobile Commerce
Trustwave Buys Cenzic To Beef Up App Testing Capability
Exclusive Series
Looking Beyond 3-D Secure’s Rocky Past
Company Spotlight
Why U.S. Consumers Are Itching for EMV Cards
Merchant Innovation
Nintendo Brings Contactless Payments To Japan
Mobile Commerce
How Many Mobile Users Actually Shop Online?
View All Articles ››