In a new development, Visa USA have taken the unprecedented step of barring CardSystems from handling any further Visa transactions;
"CardSystems has not corrected, and cannot at this point correct, the failure to provide proper data security for those accounts," said Tim Murphy, Visa's senior vice president for operations in a memorandum sent to several banks. "Visa USA has decided that CardSystems should not continue to participate as an agent in the Visa system."
Yesterday, CardSystems CEO John Perry was up before Congress to answer questions from the House Financial Services Committee, which is holding hearings into the current spate of data thefts. Perry told Reuters he thought prospects for CardSystems looked bleak:
"With that staring us in the face, it certainly means we would go out of business because, if you can't process with a major brand such as Visa, you can't process at all,"
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