The Outsourced Payment Processor You Rely On Gets It Wrong More Than You Do

Here's a discomforting statistic. Despite the sales pitches of payment processing companies telling retailers to avoid errors and costly credit card problems by outsourcing those efforts, new data finds that about 60 percent of data compromises are because of third-party processing errors and only about 40 percent are merchant mistakes.

The figures, released this week by Ambiron TrustWave, a Chicago-headquartered PCI security audit compliance firm. "POS developers, integrators and IT firms are not following PCI DSS and are leaving merchants at risk," according to a slide Ambiron prepared for a conference. "The Majority of the compromises were caused by a fault in the service provided by a third-party to a merchant."