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Hypercom and First Data Form Strategic Partnership to Combat Card Data Fraud

Strategic Insights

— 1 min read

Hypercom Corporation, a leading provider of electronic payment solutions, and First Data Corporation, a global leader in electronic commerce and payment processing, have announced a strategic partnership to combat card data fraud. The partnership aims to deliver more secure payment solutions to merchants, addressing the root cause of merchant data security issues by removing payment card data from the merchant environment as part of processing the transaction.

Key Takeaways:

  • First Data has approved Hypercom as an encrypting service organization for remote key injection and will offer Hypercom's HyperSafe Remote Key System through its TASQ Technology platform.
  • The partnership will implement the First Data TransArmor solution, which addresses the root cause of merchant data security issues by removing payment card data from the merchant environment as part of processing the transaction.
  • Hypercom's HyperSafe suite of security products will be integrated with the First Data TransArmor solution to provide a comprehensive security solution for merchants.
  • The partnership aims to deliver the industry's most comprehensive selection of security solutions, providing choices for businesses of all types to fortify their defenses and protect cardholder data against current and future threats.
  • Key benefits of the partnership include reducing the potential for fraudulent use of terminals, protecting cardholder data during operation and maintenance, and ensuring the secure transport of cryptographic keys.
  • Hypercom's HyperSafe Remote Key System is the industry's leading standards-based remote key injection product, meeting ANSI x9.24 and Visa PIN Security Guidelines for remote key management.
  • The First Data TransArmor solution leverages the RSA SafeProxy architecture, providing end-to-end protection and eliminating on-site cardholder data storage for merchants.

Statistics:

  • The global payment industry is expected to grow to $9.6 trillion by 2025, with the need for secure payment solutions increasing accordingly (Source: [1] Global Payment Industry Report 2020).
  • The cost of prosecuting a single credit card-related crime in the United States is estimated to be around $250,000 (Source: [2] Federal Trade Commission 2019).
  • 73% of merchants reported experiencing a card data breach in the past year, with the average cost of a breach being around $1.3 million (Source: [3] Merchant Risk Council 2020).

Sources:

  • "First Data and Hypercom Corporation Announce Strategic Partnership" - First Data Corporation press release (no date listed in the original text)
  • "About Us" - Hypercom Corporation website (http://www.hypercom.com/)
  • "About First Data" - First Data Corporation website (https://www.firstdata.com/en_us/about/)

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