Hypercom Corporation (NYSE: HYC) today announced the immediate availability of its HyperSafe Secure EFTSec Server 2.0 point-to-point payment data encryption system for processors and ISOs supporting Tier 4 merchants using Optimum T4200 countertop and M4200 mobile payment terminals in the United States.
A key component of Hypercom's HyperSafe Secure suite, EFTSec 2.0 encrypts cardholder data during transaction processing, starting at the payment terminal and ending at a trusted point where the data is decrypted.
EFTSec 2.0 leverages Hypercom's proven EFTSec technology, which is the industry standard for payment terminal initiated link encryption in Asia and is the largest operational end-to-end encryption implementation worldwide. EFTSec is used by major banks whose combined assets exceed US$170 billion, and is licensed to and implemented by several major terminal manufacturers in Asia. An estimated 3.4 million card payment transactions are protected every month in the four countries whose financial institutions have adopted EFTSec as the de facto standard.
Unlike recently introduced competitive systems, EFTSec 2.0 incorporates Hypercom's HyperSafe® Remote Key System (HRKS). With HRKS, EFTSec 2.0 can be remotely activated on the entire installed base of Optimum 4200 terminals. In this manner, HRKS eliminates the costs and disruptions incurred with competitors' solutions that require physically removing installed terminals, shipping them to off-site secure rooms for key injection, and then shipping them back to the merchant for reinstallation. Hypercom's HRKS has already completed more than 250,000 remote key injections.
Also in contrast to competitors' systems, and perhaps most significant to Hypercom customers, EFTSec 2.0 includes no per-transaction fees for retailers, processors, gateways or ISOs.
"Each retailer's unique needs dictate the type of point-to-point security system required. Secure payment transaction companies who support retailers clearly must adapt to and support those diverse requirements to keep the customer's business," said T.K. Cheung, Vice President, Global Quality and Security, Hypercom Corporation.
"EFTSec 2.0 squarely answers our customers' uncompromising call for proven and trusted point-to-point encryption without the oppressive, never-ending transaction fees that others are trying to force on the market. With our own EFTSec 2.0, and through our strategic partnerships with Voltage, First Data and MagTek, we provide multiple vendors' technologies resulting in the broadest suite of security solutions, each addressing a unique need to cover all segments of the retail market. And, we are considering making this technology available to support competitors' payment terminals," said Mr. Cheung.
EFTSec 2.0 is one of Hypercom's five key initiatives to boost the payment card industry's ability to thwart payment card data fraud. Hypercom's HyperSafe Secure suite delivers the payment industry's broadest range of security options to protect businesses, simplify security implementation and includes solutions from an array of companies.
The HyperSafe Secure suite uses the proven industry standard Triple DES DUKPT algorithm and incorporates Hypercom's full X509 public key infrastructure HyperSafe security layer in every Hypercom Optimum payment terminal. HyperSafe protects the terminal and applications from hackers and malware, protects the terminal management system from communicating with fraudulent terminals, complies with industry best practices for data origin authentication requirements, and ensures the secure transport of cryptographic keys. The HyperSafe security layer is provided as a standard feature in every Optimum payment terminal at no additional cost.