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Table of Contents

Lead Story

The power to pay it forward


Industry Update

FTC agrees to settle with TJX

UIGEA - punt or pass?

Welcome to Bank of AmEx

Splitsville for First Data, JPMC

A taxing situation

TJX cyber thieves get slammed


Gather 'round for a tale of business savvy and doom

Prepaid en fuego in Latin America

The golden rule of payments

The long road to payments


Visa's 'campaign' promise

Ken Musante
Humboldt Merchant Services


Street SmartsSM:
Ask and ye shall sell

Jason Felts
Advanced Merchant Services

Preparing to sell a micro deal

Lane Gordon

A clean exit

Adam Atlas
Attorney at Law

Get time on your side

Vicki M. Daughdrill
Small Business Resources LLC

Want to be trusted? Earn it

Nancy Drexler
SignaPay Ltd.

Company Profile

CSH Consulting Inc.

New Products

Processing on the edge

Precidia Technologies Inc.

True end-to-end encryption

Hypersafe Secure
Hypercom Corp.


The magic of gratitude





Resource Guide


A Bigger Thing

The Green Sheet Online Edition

November 24, 2008  •  Issue 08:11:02

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New Products

True end-to-end encryption

Product: Hypersafe Secure

The stakes for cardholder data security have never been higher. Data breaches continue to occur at an alarming rate, and fraudsters have become increasingly sophisticated in locating and exploiting weaknesses - even in Payment Card Industry Data Security Standard compliant systems. And when breaches happen, the consequences to businesses can be catastrophic.

To keep one step ahead of fraudsters, POS terminal maker Hypercom Corp. has launched HyperSafe Secure in partnership with security software provider MagTek Inc. HyperSafe Secure incorporates MagTek's MagneSafe technology that encrypts cardholder data directly at the POS terminal, so that data is never in the clear for cyber thieves to steal.

According to Gregory Boardman, Vice President of Global Product Marketing at Hypercom, the main advantages to HyperSafe Secure are threefold.

1. Standards-based encryption

HyperSafe Secure uses an open software standard for its encryption algorithm, as opposed to a closed, proprietary standard. So Hypercom's customers do not have to retool their terminals or security networks to incorporate the solution.

2. Swipe and manual entry protected

With HyperSafe Secure, encryption is embedded in both the swiping mechanism and the key entry pad. If merchants must process damaged cards, those transactions are secure when the numbers are entered manually.

3. Flexibility

Merchants can choose from two versions of HyperSafe Secure: encryption at the POS or point of swipe.

POS encryption is more economical because cardholder data is encoded within the terminal, but not at the maghead. On the other hand, maghead encryption at the point of swipe happens right when the card is run through the reader. It is a more expensive solution because merchants must incorporate new readers into their systems.

First in class

Hypercom recognizes that all merchant networks are not configured the same. Therefore, HyperSafe Secure gives merchants three options for data decryption.

Once cardholder data is encrypted, it must be decrypted at some point in order for transactions to be processed. HyperSafe Secure allows data to be decrypted within retailers' internal networks, at back-end processors, or at MagTek before it is sent on to the processors.

"So we have the option of the customer owning the decryption completely, the processor owning the decryption completely or having a hosted decryption service using MagTek," Boardman said.

End game

Boardman acknowledges that fraud itself is evolving. As the payments industry tightens security measures in one area, fraudsters migrate to other areas more vulnerable to attack. Since POS terminals are increasingly tamper-proof, thieves focus on weaknesses within wireless networks instead.

Therefore, HyperSafe Secure is designed for Level 1, big-box retailers because "fraud has moved into trying to get that crop of data ... off of their systems or while it is in transit," Boardman said.

Boardman advises ISOs and merchants to upgrade now to meet the security requirements in the near future. "End-to-end encryption is not spelled out in the DSS standard today," he said. "But you can bet it will be in the next evolution."

Hypercom Corp.

Notice to readers: These are archived articles. Contact names or information may be out of date. We regret any inconvenience.

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