Danger For Small Businesses
As a small business you can get in big financial trouble for retaining any credit or debit card data. Should the card data you have retained be compromised and used for fraudulent transactions your business will be in several types of trouble. First, you could be liable for the any fraudulent charges made with that card. Second, you could be fined by your card processor. Third, you could be dropped by your card processor.
No distinctions are made between paper and computer records. The big issue is that many older computer software systems that small businesses use to perform credit card transactions retain the data automatically. Your small business may unwittingly be keeping data that you should not.
Now, card processors don’t say that you cannot retain card data. They require that you provide certain safeguards. These safeguards are spelled out on www.visa.com . The normal small business owner would not have any idea what these instructions mean. You need to contact you credit card processor (bank) for detailed instructions. You should also contact your software provider to make sure that you have software that does not retain card holder data.
How do I know this? I did credit card compliance for a major Midwest newspaper. For more details see the Wall Street Journal for Saturday, September 22nd.
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POSTED IN: Business Improvements, Computer Technology, Finance
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