September 26th, 2005
CardSystems to be sold to CyberSource
End of the line for a credit card processor. Will Visa and Mastercard allow CyberSource to process their transactions?
From Reuters:
NEW YORK, Sept 23 (Reuters) - Electronic payment company CyberSource Corp. (CYBS.O: Quote, Profile, Research) said on Friday it intends to buy assets of CardSystems Solutions Inc., the credit-card processing company hit by a security breach this year.
CyberSource has signed a letter of intent to acquire privately held CardSystems assets for an undisclosed amount.
The move could potentially affect plans by Visa USA Inc. and American Express Co. (AXP.N: Quote, Profile, Research) to cut their ties with CardSystems following the breach that exposed some 40 million credit cards to identity theft.
CardSystems has been slapped with lawsuits over the security breach.
Richard Stiennon is an industry consultant. See his full profile and disclosure of his industry affiliations.
