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New survey reveals SME PCI compliance and security crisis

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New survey reveals SME PCI compliance and security crisis

Smaller merchants are systematically failing to engage with PCI compliance programs, according to a new acquirer survey from Sysnet Global Solutions, a leading provider of cyber security and compliance solutions to the payments industry.

The survey revealed that all acquirers believe small merchants are not effectively engaging with PCI programs, with many identifying the challenges small merchants face, including a lack of knowledge, a lack of urgency and a lack of time to dedicate to security and compliance – a worrying trend.

As a result, the vast majority of acquirers indicated they would like their compliance rates to be higher, with most aiming for minimum 70% compliance rate, and more than 15% targeting near-perfect compliance levels of 90%+. Acquirers are split on how to achieve this. The majority of respondents (76%) favour regular communication (i.e. calls, emails), while managed security and compliance service and merchant education prove equally as effective with 72% favouring each.

“We conducted this survey to put some structure on the many conversations we have had with acquiring organisations who feel they’re fighting a losing battle when it comes to getting smaller businesses secure and compliant,” said Gabriel Moynagh, CEO at Sysnet Global Solutions. “PCI non-compliance fees seem like a good idea to prompt smaller businesses to take action, but the real problem is that they just don’t have the knowledge, time or resources to get and maintain compliance.”

In reality, over half (56%) of acquirers do not believe fees drive compliance, and agree that the industry needs to wean itself off non-compliance revenue, which is a significant contributory factor in merchant attrition.

Sysnet’s survey also revealed that 44% of respondents consider non-compliance fees to damage their brand as an acquirer, and nearly every acquirer agreed that they need to do more to provide an SME offering that helps these merchants to secure their business and raise PCI compliance rates.

Wally Mlynarski, Chief Product Officer at Elavon, commented, “It is likely that PCI compliance will continue to evolve over the next five years, and it’s important for us to continue to develop and grow our SME offering by adding new value to our payment solutions. Working with Sysnet, we are already providing our SMEs with managed PCI compliance and cyber security tools, eliminating the need for them to navigate the complexities of the PCI standards, or figure out the appropriate security tools. Equally important, we are making headway in the move away from non-compliance fees as the only means to drive compliance rates and are already seeing positive results.”

Commenting on the significant challenge that acquirers face to achieve desired SMB compliance rates, Sysnet CEO, Gabriel Moynagh, added:

We’ve always looked for ways to improve the self-assessment process for smaller merchants, and have concluded that what those businesses really need is help. Our managed compliance and security solution, Proactive Data Security (PDS), not only helps merchants complete the compliance process, it also identifies and installs the security tools necessary to protect the business. A double-win for merchants, PDS reduces the risk of costly data breaches, while eliminating monthly non-compliance fees – and it costs the same or even less than they’re currently paying in non-compliance fees.”

For the full report and survey results, go to: https://wwwv.sysnetgs.com/pci-sentiment-survey-ebook

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Sunak to raise business tax to pay for COVID-19 support – The Sunday Times

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Sunak to raise business tax to pay for COVID-19 support - The Sunday Times 1

(Reuters) – British finance minister Rishi Sunak is set to increase a tax on business to pay for an extension to COVID-19 support schemes in the budget next month, The Sunday Times reported https://bit.ly/3ujaBcU.

Sunak, in his speech on March 3, will announce he is increasing corporation tax from 19 pence in the pound and will outline a pathway where it rises to 23 pence in the pound by the time of the next general election, the report said. The move will raise an expected 12 billion pounds ($16.8 billion) a year, the report added.

According to the report, at least 1 pence is set to be added to the bill for business from this autumn, at a cost to business of 3 billion pounds, with further rises in subsequent years.

Allies of Sunak clarified he would not increase corporation tax higher than 23%.

These measures will be helpful in paying for an extension to the furlough scheme, VAT cuts and business support loans until at least August.

Unlike the 2010 Conservative-led government, which pursued spending cuts to rebalance the economy after the global financial crisis, Sunak is expected to defer most of the toughest decisions about how to pay for that support in his budget speech.

“The corporation tax hike will be higher than expected and the extension of the support schemes will be longer than most people expect,” the newspaper quoted a source as saying.

Insiders indicated the stamp duty holiday on property purchases would also be extended in line with the other coronavirus support measures, the report said.

Britain’s economy had its biggest slump in 300 years in 2020, when it contracted by 10%, and will shrink by 4% in the first three months of 2021, the Bank of England predicts.

($1 = 0.7136 pounds)

 

(Reporting by Vishal Vivek in Bengaluru; Editing by Lincoln Feast.)

 

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Foxconn chairman says expects “limited impact” from chip shortage on clients

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Foxconn chairman says expects "limited impact" from chip shortage on clients 2

TAIPEI (Reuters) – The chairman of Apple Inc supplier Foxconn said on Saturday he expects his company and its clients will face only “limited impact” from a chip shortage that has rattled the global automotive and semiconductor industries.

“Since most of the customers we serve are large customers, they all have proper precautionary planning,” said Liu Young-way, chairman of the manufacturing conglomerate formally known as Hon Hai Precision Industry Co Ltd

“Therefore, the impact on these large customers is there, but limited,” he told reporters.

Liu said he expected the company to do well in the first half of 2021, “especially as the pandemic is easing and demand is still being sustained.”

The global spread of COVID-19 has increased demand for laptops, gaming consoles, and other electronics. This caused chip manufacturers to reallocate capacity away from the automotive sector, which was expecting a steep downturn.

Now, car manufacturers such as Volkswagen AG, General Motors Co and Ford Motor Co have cut output as chip capacity has shrunk.

Counterpoint Research says the shortage has extended to the smartphone sector, with application processors, display driver chips, and power management chips all facing a crunch.

However, the research firm predicts Apple will face a minimal impact, due to its large size and its suppliers’ tendency to prioritise it. Apple is Foxconn’s largest customer.

Foxconn is looking at other areas for growth, including in electric vehicles (EVs), and Liu said their EV development platform MIH now had 736 partner companies participating.

He expected it would have two or three models to show by the fourth quarter, though did not expect EVs to make an obvious contribution to company earnings until 2023.

Liu also said the company was still looking for semiconductor fab purchase opportunities in Southeast Asia after not winning a bid to take over a stake in Malaysia-based 8-inch foundry house Silterra.

(Reporting by Ben Blanchard and Jeanny Kao; Writing by Josh Horwitz; Editing by William Mallard and Ana Nicolaci da Costa)

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EU seeks alliance with U.S. on climate change, tech rules

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EU seeks alliance with U.S. on climate change, tech rules 3

By Sabine Siebold and Kate Abnett

BERLIN (Reuters) – Europe and the United States should join forces in the fight against climate change and agree on a new framework for the digital market, limiting the power of big tech companies, European Union chief executive Ursula von der Leyen said.

“I am sure: A shared transatlantic commitment to a net-zero emissions pathway by 2050 would make climate neutrality a new global benchmark,” the president of the European Commission said in a speech at the virtual Munich Security Conference on Friday.

“Together, we could create a digital economy rulebook that is valid worldwide: a set of rules based on our values, human rights and pluralism, inclusion and the protection of privacy.”

The EU has pledged to cut its net greenhouse gas emissions to zero by 2050, while President Joe Biden has committed the United States to become a “net zero economy” by 2050.

Scientists say the world must reach net zero emissions by 2050 to limit global temperature increases to 1.5 degrees above pre-industrial times and avert the most catastrophic impacts of climate change.

The hope is that a transatlantic alliance could help persuade large emitters who have yet to commit to this timeline – including China, which is aiming for carbon neutrality by 2060, and India.

“The United States is our natural partner for global leadership on climate change,” von der Leyen said.

She called the Jan. 6 storming of the U.S. Capitol a turning point for the discussion on the impact social media has on democracies.

“Of course, imposing democratic limits on the uncontrolled power of big tech companies alone will not stop political violence,” von der Leyen said. “But it is an important step.”

She was referring to a draft set of rules unveiled in December which aims to rein in tech companies that control troves of data and online platforms relied on by thousands of companies and millions of Europeans for work and social interactions.

They show the European Commission’s frustration with its antitrust cases against the tech giants, notably Alphabet Inc’s Google, which critics say have not addressed the problem.

But they also risk inflaming tensions with Washington, already irked by Brussels’ attempts to tax U.S. tech firms more.

Von der Leyen said Facebook’s decision on a news blackout on Thursday in response to a forthcoming Australian law requiring it and Google to share revenue from news underscored the importance of a global approach to dealing with tech giants.

(Additional reporting by Foo Yun Chee; editing by Robin Emmott and Nick Macfie; editing by Jonathan Oatis)

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