One of the biggest issues that affects merchants is compliance issues. When a merchant is accused of having a compliance issue, it can prevent their business from accepting electronic payments. In a world where very few merchants are cash-only, this can negatively impact the business's bottom line. Moreover, merchants who are accused of compliance issues can be forced to pay hefty fines, endure legal disputes, and watch their reputations deflate.
If you have been accused of compliance issues concerning your merchant processing procedures, you must contact an experienced merchant processing litigator as soon as possible. Contact Sigal Law Group today for a free consultation.
Electronic Payment Compliance Policies
While merchants must follow several compliance policies when accepting electronic payments for their business, the main compliance framework they must uphold is the Payment Card Industry Data Security Standard (PCI DSS). This set of policies was created to protect cardholder data throughout the electronic payment process. A merchant that violates the PCI DSS requirements will be fined by card brands and at risk of data breaches.
Another crucial set of electronic payment policies is the Payment Application Data Security Standard (PA DSS), which ensures that point-of-sale equipment and terminals meet the PCI DSS requirements. If a merchant fails to follow these rules or uses a non-compliant system, they are risking the security of their data and will be penalized for it.
In addition to PCI DSS and PA DSS, merchants must also follow several federal and state regulations that govern electronic payments. As such, if a merchant is found guilty of not being in compliance with these policies, the penalties and fines they will face can be quite harsh, including:
· Having a forensic audit.
· Having their transaction fees increased.
· Getting their processing agreements terminated.
· Being placed on the Member Alert to Control High-Risk Merchants (MATCH) list.
Consequences of Compliance Issues
Usually, compliance issues arise from a lack of understanding or failure to properly implement the compliance standards. For instance, many merchants may:
· Improperly handle cardholder data.
· Fail to regularly update and patch their systems.
· Inadequately train their employees on security protocols.
· Not have adequate network security measures.
If you are a merchant and have been accused of an electronic payment compliance issue, Sigal Law Group can help. Contact Sigal Law Group today for a free consultation.
