Those who understand how to read between the lines, the announcements this week made by Payment Processing Inc. about training courses which will meet VISA compliance guidelines for developers of applications, merchants and service providers, is that there are the first signs of a developing storm that could shake up the entire high tech industry. These guidelines would be targeting some of the unique data about the users present on the magnetic stripe of the credit card or lined to the credit card number when it is used for any of the online transactions.
A letter from Visa started it all this summer, above Eduardo Perez`s signature. He is the president of Payment Risk and Compliance at Visa, an application for payments that encourages vendors to validate that their products conform to Payment Application Best Practice at VISA. PABPs are guidelines that have been suggested to all but the largest merchants doing over 6 million transactions a year or for payment card processors. For both these entities the guidelines are actually a requirement. Although Visa is not directly related to the software industry, many people in the industry believe that the guidelines for application developers will soon turn into de facto VISA requirements, as the software users, such as card processors and merchants stand to face hefty fines for using noncompliant software.
Those including direct support for debit or credit cards on their application`s front end will likely see the greatest impact. New companies like Adelo Software with a solution that is point of sale for the restaurant business, will see less affect though according to Harry Tu the company president. In its true essence, the requirements of the VISA PABP will create a waterfall effect that will impact every single participant in the food chain of credit card payment. The president and co-founder of Coalfire Systems who is an independent auditor who has been accepted by Visa to certify level one merchants and card processors` compliance, set that Coalfire audits the entire system of payment process in order to validate compliance. According to the general manager and vice president at PPI, Eddie Myers, the entire software industry is going to be affected by it. According to Myers, this data present on the magnetic stripe could get stored and hence compromised in so many different places. Auditors such as Coalfire will look into every system to ensure that data standards are still being passed by old practices.