Heartland’s ultimate goal with E3 is to secure transactions beyond PCI DSS/regulatory requirements. The PCI DSS is a multifaceted security standard that includes requirements for security management, policies, procedures, network architecture, software design and other critical protective measures intended to help organizations proactively protect customer account data. Heartland is actively attempting to drive industry standardization with the long-term objective of furthering the security of payment data globally.
With encryption from the point of sale to the processor and then the card brands, merchants will not store or transmit unencrypted cardholder data over their networks or systems. By completely encrypting cardholder data, a merchant addresses certain PCI requirements, including protecting cardholder data (Requirement 3), encrypting cardholder data across public networks (Requirement 4), and restricting physical access to data (Requirement 7).
Cardholders, merchants, card brands and issuers alike should benefit from reduced fraudulent charges and financial liability. For example, the incidences of chargebacks and retrievals should decrease. Fewer disputed charges translate into operational efficiencies for business owners, the brands and issuing banks – as well as increased customer satisfaction and brand loyalty.
Research shows that the more consumers know their personal and account data is protected, the more comfortable they are purchasing products and services using credit, debit and prepaid cards. In fact, according to industry research, nearly 50 percent of consumers surveyed feel safer shopping on websites that carry some sort of “safe shopping seal.” Another 29 percent also said they find it to be a useful tool in determining the quality of a merchant. And, because Heartland combines the best of both worlds with its planned E3 — end-to-end technology and authentication technology that detects fraudulent activity immediately — cardholders can feel more confident using cards to pay for their purchases.
SOURCE: safeshoppingnetwork.com
"Heartland’s merchants who adopt the new encryption model will have the 'peace of mind' of being well protected since they are usually the ones that end up eating up losses in chargebacks.", says Adil Moussa, financial services analyst at Aite Group
Bank-Info-Security.com article, July 6, 2009