PABP & what it means to you

Each year merchant and financial institutions lose BILLIONS of dollars to credit card fraudsters and identity thieves. According to AmbironTrustWave, 62% of all security breaches came from the food service industry!

PABP (Payment Application Best Practices) are standards set out by Visa governing POS software applications that store, process and transmit cardholder information.

PABP compliancy is an element of Payment Card Industry-Data Security Standards (PCI-DSS). PCI has 12 requirements that detail the standards for all merchants on how to securely store and handle credit-card information. These standards have been mandated by all the credit card providers and all merchants must be compliant by 2010.

Timeline for PABP compliancy

October 1, 2008	Merchants who want to switch payment processing providers or open new locations will be forced to use a PABP compliant POS system.
October 1, 2009	Merchants that are using a POS system that is known to be vulnerable will no longer be able to process transactions. This applies to merchants that may not have had a breach at their store. If a breach occurs at another store where they use the same POS software, and it is determined to be vulnerable software, then all merchants with that same software will not be able to process transactions.
July 1 2010	Merchants with non PABP POS systems will have to upgrade or purchase a new PABP compliant system. Merchants with non-PABP compliant systems will NOT be able to process transactions.

The consequences of not operating a PABP compliant system are severe. Without a PABP compliant POS, you are putting your business at risk of receiving thousands of dollars in fines. In July 2010 merchants that have not complied with PCI-DSS will not be able to process integrated credit transactions through their POS.

What are the merchant’s responsibilities?

• Implement a PABP compliant POS, in a secure environment
• Comply with the PCI-DSS standard by completing the PCI-DSS Self Assessment Questionnaire annually
• Have networks tested regularly by subscribing to a Visa Approved Scanning Vendor’s services.

Is Halo a PABP compliant POS?

Yes!

What does a PABP compliant systems do?

• Special handling of sensitive credit card information
• Deletes historical data from credit cards
• Encrypts data
• Maintains access controls
• Maintains an audit trail of all actions taken

Why PABP?

To secure customers credit card information and reduce the risk of credit card breaches. Credit card fraud occurs in many ways, including but not limited to thieves gaining access to sensitive data that is stored insecurely and unencrypted.

What happens if there is a credit card breach at your establishment?

If a breach occurs, or card holder data is suspected to be compromised, the merchant is liable for any audit fees & fines. The total cost of a breach to a level 4 merchant can be greater than one hundred thousand dollars not to mention the negative PR caused from media attention.

For more information, visit Visa's website or read the PCI-DSS requirements.