Holy condoly Batman. I wonder what impact this will have on the hosting industry? :eek:

. . . In a statement released Monday, CardSystems said Visa's decision was unexpected and upsetting. "We are disappointed and very surprised that Visa has decided to take this action today, not only because of the impact that it will have on our employees, but the disruption that it will cause to our 110,000 merchant customers," the processor said in a statement. "We hope that Visa will reconsider."
Full story here (http://news.com.com/Visa+to+bar+transactions+by+payment+processor/2100-1029_3-5793980.html?tag=nefd.top).

Shocking news ! On the other hand im yet to see a person that does have a VISA and does not have a MasterCard or Amex or Discover or JBC or Dinners etc...I think that if other Brands will allow CSI to process the most will lose VISA then the CSI itself as ppl will pay with any other avaible method.

I've been following this fiasco a little myself. Where does this CardSystems company fall in the pecking order? I know they are not a small company. But who are some of their 'comparable' competitors?

Not really a gigantic shock. Cardsystems screwed up BIG. Visa even said in an early press-release that this would have consequences for them. I'm amazed CardSystems are still in business, but I guess with Visa pulling out, they probably won't be for long.

.. And sorry to sound so harsh, but they just f--cked up big time on this.

But you're right, will be interseting to see how this affects the hosting industry over the next few weeks. Guess a lot will flood to PayPal.

I have a feeling the other CC vendors will also pull their support from CardServices, simply from a PR perspective. Otherwise it makes them look soft of security, which is obviously a rising concern among consumers. I think this is somewhat a game of one upsmanship between Visa & MC. I read somewhere that privately Visa was fuming that MC disclosed the CardServices situation in such a public fashion, so they probably needed to do some damage control when it came out that Visa may have been aware of these breaches earlier on and didn't notify consumers. So maybe they get some goodwill back by making an example of CardServices, and I expect the others will likely follow.

In the article it was mentioned that the breach possibly began as early as August of 2004, and the complaint from Visa today is that Cardsystems still are not in compliance with Visa's security policies.

Lockbull, I wouldn't be surprised if you're right, Mastercard have yet to make a decision on whether they will continue to work with them or not. It would make sense for MC to take the Visa route. Booming business ahead for 2checkout, WorldPay et al.

THIS WILL AFFECT THE HOSTING INDUSTRY GREATLY!

Ive mentioned this before. There are a LOT Of Acquirers using this service, the including CDG Commerce, UBC, and MSHQ. I think the thing that was the most attracting about CardSystems is they offered lower rates to the acquirer for processing, but it seems they may have let some other things go.

FDRs processing network is VERY stable. Especially for Internet Based merchants.


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The impact to the Web hosting industry because of CSSI should be MINIMAL - if there is even any impact felt at all.

The reason is simple - most Internet payment gateways such as Authorize.Net, eProcessingNetwork and others are already deployed on different front-end systems than CSSI such as Paymentech, Vital and others.

And even those gateway accounts which are deployed on CSSI will simply be migrated to a different front-end network. This is very easily done for any ISO/MSP with a good support team and there is plenty of time to complete any such migrations over a 2 1/2 month period.

End result? It is a bit of a headache for the ISO/MSP but from the merchant perspective - there is no downtime, no service interruption and no difference to the merchants - it is entirely transparent and seamless.

I really don't think that this announcement regarding CSSI comes as a surprise to anyone in the bankcard industry... although many thought that this announcement would not take place until a few more months had passed.

If there is one thing to really take away from this very public CSSI fiasco - it is just how serious the Card Associations are with respect to data security.

They de-listed another company a few years back for similiar violations and I think that the straw that broke the camel's back was that CSSI was retaining full magnetic stripe information on transactions as well as CVV data and they failed to abide by the CISP/PCI rules & regs.

Well I think the funeral procession has begun for Cardsystems Solutions. Its only a matter of time before MasterCard, Amex & Discover follow Visa's lead. If they dont it will appear that they are more lax in data security requirements than Visa and I dont think they want to appear that way.

Also, it appears that some people in this thread are confusing Cardsystems Solutions, with CARDSERVICE INTERNATIONAL (CSI), one of the largest merchant account acquirers in the industry and a wholly owned subsidiary of First Data.

-MM

I read that AMEX has announced this morning that they will end their relationship with Card Systems...

http://news.com.com/American+Express+to+cut+ties+with+payment+processor/2100-1029_3-5795679.html?tag=nefd.top

I would say that by or before the end of this year one of two things will happen - Cardsystems (CSSI) will go out of business completely or another processing network will swoop in and acquire them at the last minute.

You are also correct in that Visa is using this incident to send a strong message to the payment card industry. In addition, they and the other Card Associations want to definitely stress how tough they are on enforcement now that a congressional investigation has been launched based upon that incident.