Hypercom Corp. says it is working with Heartland Payment Systems Inc. to develop the payment processor's advanced encryption product. Point-of-sale terminal maker Hypercom says Princeton, N.J.-based Heartland will license Hypercom's SmartPayments Server Software and rebrand it as Heartland Connect Gateway, which will enable Hypercom products to connect to Heartland's encryption service, Scottsdale, Ariz.-based Hypercom says. Hypercom was available to comment by CardLine's deadline. Following the January announcement that Heartland's network had been breached (CardLine, 1/20), the processor boosted its security efforts to develop an encryption system that protects sensitive cardholder from the POS terminal through transmission to the card brands (CardLine, 1/27). Since then, Heartland has begun testing an encryption system (CardLine, 8/6). Heartland also had been working with VeriFone Holdings Inc., a San Jose, Calif.-based POS device maker, but that appears to be on hold as the two companies are suing each other (CardLine, 10/22). In a statement, Heartland says on August 11 VeriFone stopped doing business with the processor, including selling terminals or providing support for existing devices. VeriFone claims Heartland's planned encryption product infringes on a patent a VeriFone subsidiary holds. Heartland alleges that VeriFone is engaged in unfair trade practices following Heartland's refusal to relinquish that product development effort.

Subscribe Now

Authoritative analysis and perspective for every segment of the payments industry

14-Day Free Trial

Authoritative analysis and perspective for every segment of the industry