Credit unions and other card issuers might take heart from the news that some of the same people who developed the data encryption standard that currently protects ATM transactions are discussing developing a similar standard for card transactions.

According to articles in the information technology trade press, the Accredited Standards Committee X9, a group accredited by the American National Standards Institute is getting ready to start work on something called the Sensitive Card Data Protection Between Device and Acquiring System program.

ASC X9 will work toward building a data encryption standard to protect information from the moment a card is swiped at a payment register to the end of the transaction chain at a so-called acquiring bank, so called end to end encryption.

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Heartland Payment Systems, the card processor that announced a serious breach in January 2009, is taking a high profile role in the effort. The company is hosting a May 7 workshop to "brainstorm technical approaches to protecting data" the company said, prior to the first ASC X9 meeting in early June.

"This preliminary meeting marks an important step in expediting the development of next-generation data security solutions," said Bob Carr, CEO Heartland Payment Systems in a prepared statement about the effort.

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