Credit unions have long become accustomed to holding the bag after hackers crack a retail payment system and make off with members' debit and credit card numbers, but now some restaurateurs have filed suit against a provider of a payment system they say was not compliant with industry card security standards.
According to media reports, the restaurateurs have filed cases in state courts in Louisiana after becoming subject to fines from Visa, MasterCard and other card brands due to card security breaches they suffered in 2007 and 2008. According to the reports, the restaurateurs in at least one case were notified they had a card breach mere months after putting in a system they had been assured was compliant with industry security standards. Later audits required by Visa, that the business paid to conduct, found that was not so.
Atlanta based Radiant Systems was named in the suits. No one from the company was available to comment on the charges, but on Dec. 18 the company released a statement urging greater industry cooperation in fighting the card data security problem.
"Our vision is to encourage all involved in transaction processing to move from a mindset of independent compliance to one of collaborative security that will greatly reduce the risk of data theft," said John Heyman, CEO at Radiant Systems. "We believe the current data security blueprint in the payments industry is designed with many constraints in mind and therefore is not able to go far enough."