The effects of breaches: A study of merchant programmes

Abstract

Breaches happen on a global scale with serious impacts on many of the firms that suffer post-breach. The media glamorise hacking as more prevalent than petty theft, while payment brands stand behind the Payment Card Industry Data Security Standard (PCI DSS) as the solution to keep merchants safe. With PCI DSS turning ten in 2014 — the same year that saw multiple high-profile breaches — members of the Merchants Acquirers’ Committee (MAC) wanted to understand how breaches affect both merchants and acquirers financially. This paper reports on primary research performed on the MAC members, specifically aimed at understanding the financial impact of breaches among merchants and acquirers. Please note, components of this research appear in an industry whitepaper authored by Branden R. Williams, as released in partnership with MAC.