Ohio bank joins credit unions suing Fiserv over security

This news highlights a growing legal battle over how financial data is protected during transactions. Antwerp Exchange Bank has joined several credit unions in a lawsuit against Fiserv, a major payment processor. The core of the dispute is about who is responsible when security breaches occur. The bank argues that Fiserv’s systems left them vulnerable to unauthorized access. Fiserv, on the other hand, claims that the individual financial institutions are responsible for choosing and managing their own security settings. For retailers and operators, this is a reminder that the technology you use to process customer financing isn't a 'set it and forget it' tool. If you offer financing at the point of sale, your customer data passes through these third-party processors. When these systems fail, the resulting legal and financial fallout can trickle down to the merchant level. This case suggests that the industry is moving toward a stricter debate over liability. It emphasizes that service providers might not always be the ones footing the bill for security lapses. You should review your service level agreements (SLAs) with your financing partners to see who is on the hook if a data breach occurs during the application or payment process.

Source: American Banker — Top News

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