Page 31 - GS230501

Education

Gateways and other services that mostly collect, store and Some processors cling to merchants by holding onto their
communicate data are increasingly taking real liability data when a merchant initiates a request to transfer their
for data breaches and for the materially negative financial data to a successor processor. There is something off-
consequences of their failures. For example, if a gateway putting about that. It is also arguably illegal considering a
accidentally processes a batch of transactions twice, and lot of data held by a processor belongs to the merchant. In
that results in chargebacks or other losses, ISOs and other any case, ISOs should consider their rights and the rights
parties are increasingly achieving real concessions from of their merchants to access and move data should the
the gateway when negotiating caps on the liability of the need arise.
gateway.
AI-generated content
It's important to take time and consider exactly who sues This article was written by a real person, the old-fashioned
whom if there is a data breach and exactly how limited way, but torrents of articles and marketing material are
each party's liability is under those circumstances. coming that will not have had much human involvement
Contractual clauses will not usually allow parties to limit at all. Before posting any such content, review it to see that
their own liability for serious fraud or other wrongdoing, it makes sense and does not mislead potential clients or
but many breaches occur without any ill-intent on the part partners. It's so easy to create content now; some sales and
of the platform that is breached. marketing folks might skip the important step of ensuring
Data portability that marketing material is not misleading.
ISOs using processors or other platforms to assist in In publishing The Green Sheet, neither the author nor the publisher are
their operations should consider the right to port data engaged in rendering legal, accounting, or other professional services. If
elsewhere, as well as how easy that right will be to exercise
in the real world. If the data is exported in a format that legal advice or other expert assistance is required, the services of a com-
is incomprehensible to a reasonable successor platform, petent professional should be sought. For further information on this
the ISO may have to rebuild the database despite having article, please contact Adam Atlas, Attorney at Law by email at atlas@
access to the data. adamatlas.com or by phone at 514-842-0886.

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