Chase Paymentech, a subsidiary of JPMorgan Chase, has formed a joint initiative with VeriFone Holdings, a provider of secure electronic payment solutions, and Semtek, a provider of magnetics technology, to provide end-to-end encryption technologies for merchants to combat threats to security.
According to the Chase Paymentech, the companies will work together to market and distribute VeriFone’s VeriShield Protect solution to the Chase Paymentech base of retail merchants. The end-to-end encryption solution is designed to help merchants reduce the costs to comply with payment card industry (PCI) requirements and associated security risk by protecting card information from the point of swipe to the Chase Paymentech authorization host.
The firm said that VeriFone Hidden Encryption (VHE), based on Semtek’s encryption technology, preserves the format of the card data, ensuring that the encrypted card data can be used by typical point-of-sale software systems with minimal modifications or disruption to the merchant. The solution eliminates the need for a merchant to process, transmit or store card data in the ‘clear’.
Mike Duffy, president of Chase Paymentech, said: “Protecting cardholder data and providing secure transaction processing for our merchants is paramount to the success of our business. As an industry leader it is our responsibility to provide proven, tested security solutions such as VeriFone’s VeriShield Protect. As the newest component of our overall security suite of products, we’re excited to be offering it to our retail customers.”
