Major credit card companies Visa and MasterCard say setting minimum purchase amounts is not permitted by their rules and regulations.

Visa USA is warning merchants about the security risk from older point-of-sale PIN-entry-devices (POS PEDs) that predate Visa PED requirements implemented in 2004. Criminals remove these devices in less than a minute and replace them with modified devices designed to skim card account numbers and PINs, it says.

With TJX facing anywhere from $500 million to nearly $1 billion in expenses, not to mention a black eye with the public over how their credit card data is secured, this experience should serve as a lesson to other retail outlets on securing their networks.

Heartland Payment Systems has announced it has "filed an antitrust action against MICROS Systems, Inc.; Merchant Link, LLC; and Chase Paymentech, owner of Merchant Link. The suit, filed in United States District Court in New Jersey, alleges the three companies have caused increased processing prices for table-service restaurants through an anti-competitive tying arrangement which violates the Sherman Antitrust Act and New Jersey's unfair competition laws."

Do you think twice when typing in your credit card number online, but have no problem handing over your plastic card at a store? Well actually, you may have it backward. Your personal information may be more secure in cyberspace than at the mall down the road.

Charging customers extra for using a credit card may not be breaking the law, but it is breaking policies between businesses and the credit card companies.

Credit card company Visa knew in late 2005 of the extensive security problems at TJX, but decided to give the retailer permission to remain non-compliant through Dec. 31, 2008, according to documents filed in federal court on Nov. 8.

More than 40 Red Mesa Grill customers recently discovered fraudulent charges on their cards after using them to pay for meals at the restaurant.

Some merchants, while complying with the truncation provision that took full effect nearly a year ago, have been hit with lawsuits for printing expiration dates, according to a Congressman who is trying to get merchants off the legal hook.

Visa has doled out some $880,000 in fines to a Cincinnati-based acquiring bank that retail chain TJX contracted with to process most of its credit card transactions. Fifth Third Bank was not following proper security guidelines related to the Payment Card Industry Data Security Standard (PCI DSS), according to court filings from a group of banking associations suing TJX over the breach.

MasterCard Worldwide has announced a new PCI Merchant Education Program - calling it "an initiative offered to acquiring bank customers that provides practical assistance in educating merchants and encouraging broader adoption of the Payment Card Industry Data Security Standard (PCI DSS)."

Credit-card companies regularly warn consumers about how to protect themselves from fraud when using plastic: scour statements for unauthorized purchases, shred paperwork that includes account numbers and don't leave bills or cards on the kitchen counter when people are in your home.

A leading retailer trade group recently called for the payment card networks to stop forcing merchants to store credit card numbers, in effect challenging banks and the networks to take more responsibility for preventing data thefts.

Off-price retailer TJX Cos. Inc. late Friday announced it had settled the consumer class-action lawsuits it faced in the wake of a security breach that compromised nearly 46 million payment card records in its computers, but big-picture issues facing card networks, processors, and merchants about the best ways to enhance card security and who should be responsible for it are far from settled.

With more Americans than ever using plastic to pay not only for high-price items but also everyday purchases like groceries, small businesses in particular complain that their profits are squeezed by card-related fees

The proportion of consumers who report having had a problem completing an online transaction has remained little changed over the past three years at around 90%, while the fraction that abandon transactions when they have a problem stands at a lofty 42%.

According to a San Francisco Chronicle editorial, the California Retailers Association has urged Gov. Arnold Schwarzenegger to veto AB779, arguing that it's burdensome on businesses and not necessary to protect privacy.

Transactions consumers make online with PIN-debit cards?but without entering their PINs?will soar 40% this year, to an estimated 92 million payments, driven by rising biller adoption, an expansion of eligible biller categories, and increasing availability of the payment option among vendors that handle payments for billers, according to a new research report.

Quietly but surely, a revolution is under way in how we pay for everything from a cup of coffee to our monthly electric bill. Continuing a climb that started a decade ago, debit cards are now preferred over credit cards by those American consumers who use plastic for their in-store purchases.

A South Carolina bank has notified several hundred credit card customers that their personal information containing, including addresses and account numbers, apparently was stolen and sold to direct-marketing organizations.

New resources for merchants wanting to know more about accepting contactless payments. A new white paper titled "Accepting Contactless Payments: A Merchant Guide" and a presentation titled "Contactless Payment Deployment: Merchant Implementation Guide" are available free of charge online.

A recent survey of 400 consumers' views on brand equity as it relates to data breaches found that 87 percent lost respect for businesses that lost sensitive customer information.

Acquirers will be penalized one interchange tier for large merchants that qualify for volume-based tiered rates and fail to show compliance with the Payment Card Industry data-security standard (PCI) by Sept. 30, Visa USA says.

The nascent market for electronic transactions in self-service machines should get a sizable boost from a Federal Reserve rule change that went into effect Aug. 6. The rule change could also foster the development of contactless transactions at these machines, laying the groundwork for payments via mobile phone for a wide array of small-value items.

Cash-strapped small-business owners are increasingly queuing up for small business cash advances. While criticized by some as predatory and usurious, this financing method is expanding, capitalizing on the growing hunger of small merchants for cash and the reluctance of traditional banks to serve it up.

The cost of processing cards isn't always what you consider when you contract for what you believe are low "rates." It's a confusing situation as processors and brokers (middlemen) lure you with low introductory fees and then tack on hidden charges, holding you hostage for a service that is mission-critical to your business. Here are some tips to help you determine if your processor and/or broker are increasing their profits at your expense. These tricks are damaging your bottom line.

More large merchants now meet the dictates of the Payment Card Industry data-security standard, or PCI, according to new numbers from Visa U.S.A. At the same time, Visa, the biggest payment-card network, is turning its security attention to small merchants, the source of the majority of data breaches.

The Capitol Hill spotlight shone again on payment card acceptance costs recently when a U.S. House of Representatives antitrust panel held a hearing to investigate interchange.

The rules that determine what personal details may appear on the receipt are found in the Fair and Accurate Credit Transaction Act (FACTA). According to the Federal Trade Commission, which oversees the act's enforcement, this law says that electronically printed credit and debit card receipts must shorten -- or truncate -- the account information.

Visa plans to roll out new, highly customized incentive and reward programs based on more detailed consumer information, including data on purchases, buying habits, and retailer loyalty.

Using a credit card at a gas station could pose more of a risk for data theft than shopping online, as point-of-sale terminals have emerged as a weak link in the security chain, according to a Gartner Inc. analyst.

Credit card companies and banks get an average of 1.75 percent on every gallon of gas sold, and credit card processing fees now rank as the second-biggest expense for gas stations operators, according to the National Association of Convenience Stores.

It's no secret that the cost of accepting credit cards is reaching dire new heights. According to the most recent National Association of Convenience Stores (NACS) State of the Industry (SOI) report, retailers were burned for an estimated $6.6 billion dollars in credit card processing fees?an increase of over $1 billion from the prior year.

Visa, the biggest credit card network in the U.S., took its first official step Friday toward becoming a public company, outlining to federal regulators how it proposes to restructure and combine its global operations.

From Christmas stockings to bar mitzvah bashes, plastic gift cards from big chain stores have become an accepted part of American gift-giving over the past decade. Now, local retailers are getting into the act, offering gift cards instead of old-fashioned gift certificates.

Downtown Indianapolis restaurateur Regina Mehallick admits figuring out how much credit-card fees affect her bottom line doesn't occupy a big slice of her busy day ... But, perhaps it should.

A federal judge issued an injunction striking down a Visa fee aimed at discouraging issuers of Visa-branded debit cards from switching to MasterCard.

TJX Cos. faces federal lawsuits in five additional states over a data theft that exposed at least 45 million credit and debit cards to potential fraud.

Missouri's Attorney General has filed a lawsuit seeking restitution and penalties against a Kansas City company that repeatedly violated Missouri consumer protection laws in the sale of credit card processing equipment to small businesses.

Credit and debit card payments have risen sharply in recent years and now make up a large percentage of sales at small businesses. Although it's clearly a convenience, many small businesses nationwide worry about the mounting "interchange" fees they pay on card transactions and their effect on prices.

A recent case filed by the Federal Trade Commission against an independent sales organization in Beaverton, Ore., may not be the last such action the federal regulator will bring. In April, the agency sued Merchant Processing Inc. in federal court, alleging the ISO duped merchants by promising to buy out existing terminal contracts and handle transactions at lower rates.

Merchants need to take time to look at their statements. Although it can be confusing, learning about the fees and shopping around for rates could save you money. Know what you're paying.

A credit card processing machine was supposed to save merchants money but it's already cost them thousands of dollars. A New York corporation has filed suits against hundreds of mom and pop businesses. But then, in a dramatic twist, the small businesses claimed they were the victims, that they were ripped off.

The biggest known theft of credit-card numbers in history began two summers ago outside a Marshalls discount clothing store near St. Paul, Minn. Investigators now believe, hackers pointed a telescope-shaped antenna toward the store and used a laptop computer to gather information about customers.

A father and son from the Sacramento CA area, have pleaded guilty in federal court to one felony count each arising out of a scheme to defraud about 1,200 customers out of over $200,000.

The Federal District Court in Oregon has frozen the assets of Beaverton-based Merchant Processing, Inc. (MPI), its owner, and affiliated companies. The court ordered a temporary halt to claims the Federal Trade Commission alleges are deceptive, and appointed a receiver to temporarily take control of the business. The FTC alleges that the defendants used deceptive tactics to sell credit and debit card processing services to thousands of small businesses across the county.

Nine states have introduced a total of 15 bills concerning the hidden credit card interchange fees that cost U.S. consumers $36 billion last year.

In a terse announcement released on April 12, Visa USA said its overall effective interchange rate for the coming year will be 1.77%, up 0.6% from the 2006 systemwide rate.

Experts say TJX either failed to encrypt or truncate credit card numbers or did not secure encryption keys. The exposure of 45.7 million credit and debit card numbers in the TJX data theft should serve as a wakeup call to retailers who risk losing money and credibility when they fail to protect sensitive customer data, say officials at the PCI Security Standards Council.

Menusoft Systems Corporation, developers of Digital Dining software, recently announced certification by American Express over direct IP. This allows their POS application to save merchants significant amounts on their transaction fees.

When a hacker infiltrated the credit card processing system for one of his Atlanta Bread Co. restaurants in the fall, it set off a "nightmare" for Bob Riekhof accompanied by a bill of about $25,000 and counting, the franchisee said.

A survey released this week by a major trade association for corporate treasury officials raises an alarm about fraud in check and electronic payments...

With efforts by merchants to force down interchange rates picking up steam, the rapidly expanding prepaid card market will confront two very different outcomes should those efforts ultimately succeed, according to an expert on interchange.

Of all the demands of running a business, shopping for a competitive credit card processor might seem trivial. Yet a healthy dose of due diligence can go a long way.

As part of the "Visa Check/MasterMoney Antitrust Litigation" settlement (frequently referred to as the Wal-Mart suit), Visa and MasterCard were required to reissue more than 250 million ATM/debit cards with the word "Debit" on the face so that merchants could clearly distinguish them from credit cards. This requirement went into effect on January 1, 2007. More information is available at the following link.

Visa USA has announced it will offer $20 million in financial incentives and create new sanctions in an effort to further merchant compliance with the Payment Card Industry Data Security Standard (PCI DSS).

Accepting credit cards is becoming a must for entrepreneurs and small businesses in today's business environment. There are numerous social, demographic, and technological factors combining to make plastic the payment form of choice for increasing numbers of people.

WAKEFIELD, Mass. Sept. 7, 2006 - American Express, Discover Financial Services, JCB, MasterCard Worldwide and Visa International today jointly announced the formation of an independent council designed to manage the ongoing evolution of the Payment Card Industry (PCI) Data Security Standard, which focuses on improving payment account security throughout the transaction process. The founding of the PCI Security Standards Council, LLC, marks a significant milestone in the payment industry's efforts to secure payment account data in a globally consistent manner. Ultimately this means that more than a billion global payment card users will benefit from a higher level of security protection against data theft and fraud.

MasterCard Announces Interchange Initiatives Aimed at Maximizing the Value of MasterCard card acceptance