Restrict Access to Cardholder Data

Merchants you must implement strong access control measures to cardholder data, this is written in requirment 7 of PCI security requirements. If you have several people who have access to card holder data you must have a formal security policy that lays out a statement of least privilege. You can write your own in simple terms that everyone will understand.

Unauthorized access to cardholder data is punishable up to immediate termination. You as a manager must let your staff know this is as serious as losing employment.
Let everyone know fines up to 500,000 dollars can be levied against the company for a breech.

Consumers Cutting Back

U.S. consumers are cutting back on borrowing like never before, according to the Federal Reserve.With banks and card issuers cutting credit, and with unemployment rising, housing prices still falling, and generally poor economic news, consumers are hesitant to borrow. Credit card balances, auto loans and other forms of consumer credit fell by by $21.6 billion in July, the biggest decline on record.
That's equivalent to an annual decline of 10.4 percent, the Federal Reserve said. It's the sixth consecutive month the measure of consumer credit has contracted. In June, it fell by a revised 7.5 percent.Both Visa and MasterCard say the proportion of debit transactions on their networks is growing. At Visa, the world's largest payment network, they've surpassed credit card purchases.Revolving credit, comprising mostly credit card balances, fell eight percent in July. Meanwhile, non-revolving credit fell 11.7 percent

No More Checks

Two grocery chains have stopped taking personal checks, Fresh and Easy Market has stopped accepting personal checks at it's 70 stores in California. Whole Food is testing a check free policy at two of it's LA stores. It will be interesting to see if they lose customers or they just switch to debit cards which is what this is all about. Taking a debit card and accepting a check is like night and day with the check you have to make a deposit, meaning someone has to go to the bank, then waiting for the check to clear or use a check service.
Accepting a debit card all electronic you treat it just like a credit card transaction which it is in reality. This could be the start of no checks at major stores, we will keep you informed

Thanks

Bruce Bryen
Preferred Merchant Services

PCI Rules

PCI (Payment Card Industry) has new rules and fee's going into effect in the near future in a effort to make merchants more responsible for protecting card holder data. Fine's to the merchant can go up to 50 thousand dollars. You as a merchant should not be storing card holder account information, if you must use your processors storage through a virtual terminal where you hold data on your processors servers.

Card Payments

Roughly 35 percent of credit cardholders pay late or extended limit fee's
(U.S Government Accountablility Offices)

Minimum Payments

35 Million credit cardholders can only afford to make minimum payments on their outbalances every month
(the Federal Reserve)

Massive Data Breach

Portland Maine (March 17, 2008)
A security breach at an East Coast Supermarket chain reported they a massive data breach when a estimated 4.2 million credit debit card numbers were exposed over a several month period. So far about 1,800 cases of fraud have been reported so far relating to the breach. No personal data such as names, address or telephone numbers were divulged, just account numbers.
The U.S. Secret Services has confirmed they are investigating, but to comment on the scope of the crime
The case ranks among the largest breaches on record involving retailers, but far fewer cards were exposed than in the largest hack. Over 45 million cars were exposed by the breach at TJ Max and Marshall's that began in 2005 and was disclosed last year.