Heartland Payment Systems
Payment card terminal maker VeriFone Holdings Inc. on Monday issued a press release trumpeting its victory in a courtroom skirmish with merchant acquirer Heartland Payment Systems Inc.
Albert Gonzalez, who in September admitted to hacking computers at TJX Co., BJ’s Wholesale Club, and Barnes & Noble, Tuesday pleaded guilty to stealing data from Heartland Payment Systems, Hannaford Brothers, 7-Eleven, and Target Co.
Details of the case reveal that prosecutors blamed Gonzalez and his partners of stealing over 130 Million credit and debit cards details by breaking into the systems of numerous retailers which include 7-Eleven Inc., the supermarket chain Hannaford Brothers Co., and Heartland Payment Systems, a New Jersey firm which processes card payments for several businesses.
Nearly a year after Heartland disclosed what turned out to be the biggest breach involving payment card data, the company remains a potent example of how compliance with industry standards is no guarantee of security
Heartland Payment Systems and Visa have announced “a settlement agreement under which issuers of Visa-branded credit and debit cards will have an opportunity to obtain a recoveryfrom Heartland with respect to losses they may have incurred from the 2008 criminal breach of Heartland’s payment system environment. Heartland will pay up to $60 million to fund the settlement program, which is subject to certain conditions, including a specified level of participation by U.S. Visa issuers. Visa will present details of the settlement to eligible issuers in the coming days.”
Three law firms representing credit unions and other card issuers with litigation pending againstHeartland Payment Systems, are urging card issuers to reconsider signing on to the offer.
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