Guidelines for Negotiating Payment Processing Agreements

Credit cards are the primary form of payment received by most retailers. In order to process a credit card a retailer must enter into an agreement with a bank and a payment processor. Payment processing agreements often have significant impacts on a retailer’s financial liability in the event of a data breach. In many cases, the contractual liabilities that flow from a payment processing agreement surpass all other financial liabilities that arise from a data breach including the cost to investigate an incident, defend litigation, and defend a regulatory investigation. The following provides a snapshot of information concerning payment processing agreements. …

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