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PCI Protection Plan
Program Overview
The PCI Protection Plan is a new and unique indemnification program acquired to reduce
monetary exposure in the event of a data compromise of a merchant account. The PCI Protection
Plan is designed specifically to meet the expenses resulting from a suspected or actual breach
of credit card data from one a merchant account. The program is offered exclusively by Royal
Group Services (www.royalgroupservices.com) and underwritten by Great American Insurance Group
(www.greatamericaninsurance.com), a financially strong insurance organization whose insurance
companies are rated “A” by independent third party rating agencies.
The Program Covers
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A mandatory forensic audit required by the Payment Card Industry Data Security Standard (PCI DSS) of a merchant when a data breach is suspected. |
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The data breach can be either a system/network breach or the physical theft of the credit card data from stolen receipts, stolen computers, skimming, or even employee theft.
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Card replacement costs and related expenses resulting from the data breach.
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All Level 2, 3 and 4 merchants regardless of their level of compliance with the standard. |
The Program Limits
Each merchant account is protected up to a maximum of $100,000 and there is
NO deductible.
Frequently Asked Questions
Why do merchant accounts need this coverage?
If a merchant account suffers a suspected or actual data breach, the business responsible
for the merchant account could incur thousands upon thousands of dollars of unexpected
costs in the form of audit expenses, card monitoring and replacement expenses, and fines.
These costs could significantly affect revenue…and even jeopardize the existence of a business.
The PCI Protection Plan reduces a protected merchant account’s monetary exposure when a presumed
or actual data compromise occurs, thus providing peace of mind!
What insurance company underwrites this program?
Great American Insurance Group
(www.greatamericaninsurance.com) has collaborated
with RGS to create this program. Great American is a well-established, financially strong insurance group whose
insurance companies hold “A” ratings from independent third party rating agencies.
What is the the protection limit?
The maximum protection is $100,000 per incident, for each merchant account.
Is there any deductible?
There is NO deductible!
If a merchant agreement has multiple merchant accounts, is each account protected for
$100,000
The PCI Protection Plan provides protection on a per-merchant account basis but an incident and annual limit of $500,000 does apply to
a merchant agreement with ten or more protected merchant accounts.
Can any merchant account qualify for this program?
Any Level 2, 3 or 4 merchant account is eligible, provided it has not already suffered a data compromise.
Level 1 merchant accounts are not eligible for this protection.
Must a merchant account be PCI DSS compliant in order to be protected under the Program?
No. However, if a merchant account experiences a breach, the merchant account must become compliant before that merchant account
can participate in (or re-enter) the Program.
Level 4 merchant accounts aren't breached often are they?
Absolutely, they are! Nearly two thirds of all breaches occur at Level 4 merchant
accounts. In fact, Eduardo Perez, VISA USA’s Vice President of Payment Systems
and Risk, stated at the 2007 Electronic Transactions Association trade show in
Las Vegas, “Hackers are concentrating on the smaller merchants… that’s where
we see the greatest vulnerability.”
If the transaction processing system used with a merchant account does not store magnetic stripe data,
can it still have a data compromise?
Yes! While it is true that merchant accounts that store magnetic stripe data are
the most vulnerable, there are a number of other risks. For example, missing or
outdated security patches, using vendor supplied default settings and passwords,
SQL injections by hackers, unnecessary and vulnerable services on your servers,
stolen receipts, stolen computers, employee theft, and skimming can all lead to
significant data compromises and subject the merchant account to audits, card
replacement costs, and fines.
IF a merchant account is certified to be PCI DSS compliant. Does it still need to be
in the Program?
Yes! Certification of PCI DSS compliance is not a guarantee that a breach
will not occur. The analogy that best describes the situation is this: “You
can have the best alarm system in the world, but it is useless if you don’t
turn it on.” Also, the Program covers employee theft and the physical
theft of data. PCI DSS compliance alone cannot prevent these losses.
How is a data compromise reported for the Program?
To report a data compromise you simply have to: (1) complete the online claim
form; (2) submit (via the web or fax) the notice from the card brand or acquiring
bank that stipulates there has been (or there is the suspicion of) a data breach
at your covered location; and (3) submit (via the web or fax) a copy of the
invoice provided by the certified PCI DSS auditor.
To submit additional expenses on an open claim you simply have to:
(1) enter your claim number in the online claim form; and (2)
submit (via the web or fax) a copy of the demand for payment
from the card brand or acquiring bank that explains that these
demanded reimbursements/fines were the result of an actual data breach.
If a merchant account does suffer a loss, how quickly will the claim be processed?
Quickly! Once the relevant documentation is provided, the requests for payments will
be processed. Assuming that the documentation is in order, the request should be
processed within thirty days.
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