Heartland settles with American Express over breach

Share this article:

Heartland Payment Systems will pay American Express $3.6 million under a settlement related to the record-breaking data breach that the payments processor revealed earlier this year.

The deal, announced Thursday, finalizes any ongoing disputes between the card brand and Heartland over the massive data-loss incident, believed to have involved more than 100 million credit and debit cards.

Heartland has yet to announce settlements with Visa and MasterCard, a company spokeswoman told SCMagazineUS.com on Thursday.

Both of those card brands previously have imposed and collected fines from Heartland's acquiring banks. Those penalties were part of the $12.6 million that Heartland had set aside to pay for costs related to the intrusion. Roughly half of that amount went toward a MasterCard fine levied against Heartland's acquirers.

The fine, which is passed by the banks to Heartland, was issued because MasterCard alleged that Heartland failed to take proper actions after it learned of a possible breach and after it disclosed the incident to the public, Heartland Chairman and CEO Bob Carr said in May.

"Heartland believes that it responded appropriately to all information that it learned regarding the possibility of the system breach, and that upon discovering the intrusion, it took immediate and extraordinary action to address the intrusion," Carr said.

Share this article:

Sign up to our newsletters

More in News

Medical transcription provider settles data security charges

GMR Transcription Services in California agreed to settle FTC charges related to its security practices.

Researcher hacks network connected devices in own home

Researcher hacks network connected devices in own home

In his own home, a researcher was able to hack various network connected devices that are not computers and mobile phones.

Study: Most higher ed malware infections attributed to 'Flashback'

Study: Most higher ed malware infections attributed to ...

Flashback caused a stir in 2012 when some 650,000 Macs were infected with the malware.