Heartland, one of the largest retail payment processors in the U.S., has “total confidence” in E3 encryption and so is getting into the breach insurance business.
Heartland Payment Systems is so confident in the security of its payment processing technology that, on Jan. 12, it announced a new breach warranty for its users. The warranty program will reimburse merchants for costs incurred from a data breach that involves the Heartland Secure credit card payment processing system.
The new warranty from Heartland comes at an interesting time for merchants. There were many high-profile data breaches at merchants in 2014, including Target, Staples and Home Depot. From a regulatory perspective, President Obama is now reportedly set to announce new data breach disclosure laws, in the form of the Personal Data Notification and Protection Act, during his State of the Union address at the end of January.
“There is no bad time to ensure the businesses that process cards with us are safe,” Mike English, executive director of product development at Heartland. “Hackers and criminals don’t wait until the busy times to breach a retail or restaurant network.”
The Heartland breach warranty covers costs a merchant incurs as a result of a breach and card data being stolen, according to English. There are multiple costs that can be associated with a breach.