Heartland Payment Systems Inc. has completed the first test of an end-to-end encryption system designed to protect the cardholder data it handles from hackers.

The Princeton, N.J., processor, which disclosed a major breach in January, said Tuesday that it had run transactions from all four major card brands on the E3 system. However, the networks — Visa Inc., MasterCard Inc., American Express Co. and Discover Financial Services — do not accept encrypted data from Heartland, so it had to decrypt the data to complete the transactions.

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