I have a business coach from a local university's business school. He has made me aware of a seller's liability for customer credit card information when conducting online credit card transactions. The concern is that a 3rd party could gain access to a customer's credit information without the buyer or the seller's knowledge (hacking).
PayPal changed its Terms of Service agreements and policies in early 2008 stating that all liability for any breach as described above is on the seller, not on the credit card processor. Since that time, all other credit card proc. companies have done the same with their policies. Here is the link to the PayPal policy statements: https://www.paypal.com/us/cgi-bin/webscr?cmd=xpt/UserAgreement/ua/USUA-outside (Section 10 especially).
Question: Has anyone noticed this? What have you done about it? More insurance? I have a quote, and it is cost-prohibitive for a very young company. What do you do about online credit card sales and the liability on the seller?
That's a really good question and I'm guessing the laws on the enforceability of this liability would be different from state to state.
After looking through the agreement though, I can't find any language that indicates liability would fall on the seller for 3rd party hacking of this nature.
CharlotteW | Former Moderator |
9/3/2009 - 12:35 pm
Welcome to the Business.gov Community, CardAssist! Thanks for your response regarding credit card sales. It sounds like you have a wealth of knowledge to share with businesses with credit card questions. We look forward to hearing more from you.
CardAssist | Window Shopper | 9/3/2009 - 12:05 am
CharlotteW | Former Moderator | 9/3/2009 - 12:35 pm
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