Thursday, July 21, 2005

American Express Cuts Ties With Processor

Finally at last the major credit card companies (American Express Co., Master Card, and Visa) are taking action against CardSystems Solutions Inc., the Tucson-based company responsible for the largest loss of credit card data in history. It's certainly time for something to happen to this company for putting so many of us at risk for identity theft due to their carelessness.

Let’s hope that this action will send a strong message to all the companies that process our credit cards that the loss of personal data will have major consequences.

But is this really a case of too little too late?

Will the major credit card companies really stick by this decision and not just give a little slap on the wrist to CardSystems Solutions Inc. before going back to business as usual?

Will the credit card companies do what the government so far has been unwilling too do; punish companies that are careless with our personal information?

Well I for one doubt it.

Let’s face it; one of the last of the "Good Old Boy Clubs" is the credit card industry. Most of the companies that process credit cards and collect consumer data are private companies answering to no one. Not to the government due to the lack of laws and regulations and not to the public or stock holders due to their being private businesses.

From the massive amount of lobbying money they throw around in Washington to the ruthless business practices they employ against their competition the big boys in this industry play rough. Worse still they care little about the customers that make them their obscene profits. These guys make Microsoft's business practices look like school boy antics.

So what I predict will really happen is that as soon as the publicity quiets down the major credit card companies will go right back to using CardSystems Solutions Inc. It will be business as usual just as it was before any of this ever happened and their buddies who own CardSystems Solutions Inc. (Including Camden Partners a major private venture capitol company which invested $9.3 million in the Tucson company last year.) will continue to rake it in while leaving us at risk.

Anyway a good article about American Express’s, Master Card’s, and Visa’s action against CardSystems Solutions Inc. can be found here;

American Express Cuts Ties With Processor

Let,s just hope that it's for real and this company is made to pay the price for their carelessness.

1 comment:

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