What is credit card PCI security audit?

Sept. 2, 2009 - PRLog -- Focusing on restaurant credit card security measures

Hundreds and even thousands of restaurants is being penalized by the credit card industry for not sufficiently protecting their diner's credit card information from the possibility of theft, with Visa, MasterCard and financial organizations that process electronic payment over the past months are sending warning letters and conducting seminars. With these moves, it forces restaurants to take more action when it comes to guarding their diners' credit card information.

According to companies that process card transactions, there are thousands of restaurants that are not complying with the security rules set by the credit card industry.  Any company that takes plastic is required to follow a set of security regulations instituted by Visa, MasterCard, American Express and Discover.

In the data recorded by Visa indicates that since January of 2005, around 40% of the incident wherein criminals gain unauthorized access to credit card info is made up of restaurants -- accounting for the largest percentage of incidents for a merchant category.

Separately, there are reports from a Chicago-based data security auditor, AmbironTrustWave, for merchants that with the 62% security violations it witnessed during the prior 18 months are with the restaurant industry.

The violations involved different kinds of security lapses such as poorly guarded wireless networks -- which easily enable thieves to access sensitive information using a laptop from the parking lot -- as well as the lack of strictness to their systems that makes it a lot easier for an unethical staff to grab credit card information.

Mostly, consumers are not aware when their credit card information is in danger. Although, not all security breaches succeeds, and most merchants do not acknowledge these incidents unless there's a significant probability that a major fraud has already been identified or about to take place. Furthermore, credit card issuers don't usually close a customer's account unless fraud has taken place.

Restaurant owners may have a hard time with credit card security rules, since the regulations can be difficult for smaller merchants. The National Restaurant Association trade group says that it hears from restaurant owners who thought they complied with rules, but found out their systems were not functioning properly and were penalized.

Fines for restaurants that violate credit card industry rules by storing credit card data have amounted to more than $100,000 in some cases. In 2006, Visa fined merchants across all categories $4.6 million for security violations, an increase from the $3.4 million in fines the previous year.

Visa, which declined to provide a breakdown of merchant types, said it recently held special security briefings with several hundred restaurants, a merchant group Visa believes needs additional attention.

During the same time, the companies that process credit cards have also turned the heat on restaurants. Credit card companiesthreatened those who do not follow security regulations that they will end their services.

Since most restaurants uses software combining such features as tabulating bills, delivering orders to the kitchen and tracking reservations, credit card companies are worried because they cannot command software makers to abide by their security rules, so they put on the pressure to restaurants. Visa maintains a list on its Web site of software programs that meet its requirements.

But software makers that even with the best software, restaurants could be in trouble if they lack in password protection or firewalls. For software companies, they say that it's not their part to let restaurant owners know what they must do to be in compliance with credit card rules.

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The author of this article is the VP of Customer Relations at POS-For-Restaurants.com with over 20 years experience helping restaurants nationwide increase their efficiency and bottom-line profits using restaurant POS systems.

You may visit http://www.pos-for-restaurants.com for more information on how our national network of restaurant point of sale experts can help your business achieve greater success in these difficult economic times.

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