Merchant Warehouse Addresses Lack of PCI Compliance Education for Small Business Merchants

Business Wire, March 14, 2008

Company President Takes Authoritative Stance on Payment Card Industry Data Security Standard

BOSTON -- Merchant Warehouse, the preferred provider of merchant accounts and credit card equipment for small- and mid-sized businesses, today announces a program that provides merchant education strategies for those independent merchants seeking reliable direction in addressing the payment card industry data security standard (PCI DSS).

Henry Helgeson, President and Co-CEO, is available to provide commentary and guidance around how small businesses, also known as Level 4 merchants, can better identify the benefits, objectives, requirements, timelines, audit procedures, and appropriate equipment needed to confidently comply with the PCI standard. This standard was created by the five major credit card companies as a guideline to help merchants implement the necessary equipment and procedures that guard sensitive credit card and personal information.

As the PCI standard continues to be enforced as the standard for credit card data security, the emphasis of compliance mandates have focused primarily on Level 1, Level 2 and Level 3 merchants. According to Visa, 65 percent of Level 1 merchants and 42 percent of Level 2 merchants are currently PCI compliant, but a lack of education and proper informative resources have kept the majority of Level 4 merchants from reaching comparable adoption rates.

Level 4 merchants are defined as those companies who process up to 20,000 Visa and MasterCard e-commerce transactions per year and all other merchants, regardless of acceptance channel, who process up to one million Visa or MasterCard transactions per year. Without the proper leadership and tools to become PCI compliant, they run the risk of damage to their reputation, audit fees, fines from credit card companies, and disrupted operations - all of which can cripple or condemn a business.

Helgeson believes Level 4 merchants are particularly vulnerable because they lack technical expertise and IT staff to properly secure card holder data. "Payment card data theft is thriving. Outdated POS systems and software, inadequate staff training, and outdated security policies leave gaps for hackers to compromise the credit card data valued customers use to purchase goods and services," he said. "Since requirements and timelines for PCI compliance are continually altered, we're making model examples of our customers by ensuring they are armed with the most up-to-date knowledge and equipment."

Founded in 1998, Helgeson has grown Merchant Warehouse to service over 40,000 customers who combine to process over $2 billion in credit card transactions each year. With a strong focus on customer service, Merchant Warehouse has helped shape the industry and has earned one of the best reputations in the credit card processing industry.

About Merchant Warehouse

Merchant Warehouse was founded in 1998 on the principle that businesses should be able to purchase credit card processing software, POS equipment, and merchant services at a reasonable price. With over 40,000 merchants, Merchant Warehouse now sets the standard for price, innovation, customer service, and integrity. For more information, please visit www.MerchantWarehouse.com. For information on the Merchant Warehouse agent and ISO network, please call (800) 491-4580.