CyberSource to acquire CardSystems
CyberSource to acquire CardSystems
Sep 27, 2005: CyberSource, a leading provider in e-payments and risk management solutions, has signed a letter of intent to acquire all the assets of privately owned CardSystems Solutions. Based in Atlanta, Georgia, CardSystems made headlines around the world in May this year when a security breach exposed around 40 million Visa and American Express customer credit card details to identity theft online.
The deal could halt plans by Visa USA and American Express to cut ties with CardSystems, who lost authorisation to use certain card authorisation networks from October 31st and became subject to a number of lawsuits in response to the breach.
CyberSource’s acquisition of CardSystems’ processing platform would significantly increase its core business serving eCommerce merchants. “The addition of CardSystems technology extends CyberSource’s capability to offer innovative, end-to-end payment solutions to its customers.” Said chairman and CEO of CyberSource Bill McKiernan.
Not only will it give CyberSource retail point-of-sale processing for multi-channel merchants, but also automated chargeback management and accelerated growth in the small business sector through CardSystems’ established network of ISO’s.
The deal is by no means definitive, however CardSystems and CyberSource are working with banks and card associations to provide uninterrupted processing for CardSystems merchants and channel partners.
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