Friday, December 4, 2009

The Merchants Strike Back?

With the recent news of several restaurants teaming up to sue point-of-sale system provider Radiant Systems (a copy of the complaint can be found here) for failing to comply with the PCI Standard, it appears that some merchants may be in a mood to strike back in the aftermath of a payment card security breach.

This lawsuit comes in the wake of a couple lawsuits against payment card security assessor Savvis for allegedly failing to properly validate a processors' Visa CISP compliance (admittedly in this case it is the merchant bank suing the assessor, but a similar cause of action could exist for a merchant if its assessor makes a mistake in verifying PCI compliance).

While two instances certainly don’t indicate a trend, they do indicate a potential route that merchants may consider to deflect liability arsing out of a payment card security breach. infolawgroup

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