Visa Bars CardSystems Solutions From Transactions

Visa USA will no longer allow CardSystems Solutions to handle itstransactions after the payment processor company left 40 million ofVisa cardholders at risk for fraud. The New York Timesreports that the decision came after a review and independentinvestigation found that CardSystems improperly stored cardholder dataand did not have the proper controls in place. Despite some effortsince the incident, the actions by CardSystems were not enough tocorrect those issues. The move by Visa also comes before the executivesof many major credit card companies are to testify in Washington abouttheir security practices. At least 11 banks using CardSystems formerchant transactions have until October to change processors. Read more.