Pay By Touch Acquires Troubled CardsProcessor
SAN FRANCISCO - (10/18/05) -- Pay By Touch, the leader inbiometric payments, announced Monday it has agreed to acquireCardSystems Solutions, the credit cards processor that was hit bythe theft of information form an estimated 40 million accounts thecompany was processing for the credit card companies earlier thisyear. Pay By Touch, which is installing its prototype fingerprintpayment system in supermarkets across the country, said it made thedeal because of the 120,000 merchant accounts held by CardSystems.Terms of the deal were not disclosed. The CardSystems deal comesafter a preliminary agreement by CyberSource Corp., to acquireCardSystems fell through. The deal comes after Visa, MasterCard andother cards processors threatened to terminate their business withCardSystems because of the massive data breach. Visa as agreed toretain CardSystems until at least January 31 to determine whetherthe company has resolved its security shortcomings.