Heartland E3 Adopted By Leading Payments Manufacturers

End-to-end encryption solution provides interoperability

March 27, 2010

3 Min Read

PRESS RELEASE

PRINCETON, NJ - March 25, 2010 - Several of the world's leading electronic payments system manufacturers are working with Heartland Payment Systems (NYSE: HPY), one of the nation's largest payments processors, to ensure their point-of-sale (POS) devices and other payments platforms offer the highest level of data security to businesses that accept credit and debit card payments. These manufacturers are integrating Heartland's E3 protocol, an industry-leading end-to-end encryption solution that leverages Voltage SecureData encryption and key management technology. End-to-end encryption is considered the most effective security method available for protecting cardholder data.

E3 uses the strongest encryption methods available to safeguard cardholder data at rest and in motion throughout the lifecycle of payments transactions from the moment of card swipe to and through the payment processor's network to participating card brands. E3 is designed to offer full lifecycle protection, not merely point-to-point like most competing solutions, and render payment data useless in the event of a compromise.

In early 2009, Heartland began working with Voltage Security to develop a comprehensive end-to-end encryption solution that did not exist in the marketplace at that time. E3 is the only security solution that offers comprehensive, layered coverage — including software and hardware. E3 features a tamper-resistant POS terminal, magnetic stripe reader/wedge and other devices and software tools that protect cardholder data and never store it on a business' system, relieving the business of PCI card data liability.

Over the past several months, Heartland has provided leading manufacturers — including strategic partner Uniform Industrial Corporation (UIC), Hypercom, ExaDigm, and others — with the E3 protocol specification.

"Heartland set out to create a new standard and make the highest degree of security available to each and every merchant regardless of size or resources — and without charging them extra fees and taxes for enhanced security. We have taken the lead in the movement for greater security standards in the payments industry, urging industry leaders to work together to fight cyber criminals," said Steve Elefant, Heartland's chief information officer. "As several of the world's leading payments equipment manufacturers move to embrace our E3 protocol, it is a testament to the security, innovation and interoperability of our solution, as well as their commitment to help secure payment data and protect all stakeholders in the payments ecosystem with the most comprehensive security solution available today."

"Hypercom applauds the industry leading position Heartland has adopted and continues to champion for the protection of transaction card data and the provision of true end-to-end security," said T.K. Cheung, vice president, global quality and security, Hypercom Corporation. "Hypercom is committed to supporting Heartland's E3 protocols and platforms."

E3 entered beta testing in June 2009 — which marked the first time encrypted transactions have been sent from a merchant's card reader to and through a major processor's payments network. The E3 solution is currently available in limited release and will be widely available in the second quarter of this year. For more information on E3 — or to download a just-released white paper, "Card Payment Security for the Small Merchant," written by George Peabody of Mercator Advisory Group — visit E3secure.com.

About Heartland Payment Systems Heartland Payment Systems (NYSE: HPY), the 5th largest payments processor in the United States, delivers credit/debit/prepaid card processing, payroll, check management and payments solutions to more than 250,000 business locations nationwide. Heartland is the founding supporter of The Merchant Bill of Rights, a public advocacy initiative that educates merchants about fair credit and debit card processing practices. For more information, please visit HeartlandPaymentSystems.com, MerchantBillOfRights.org, CostOfABurger.com and E3secure.com.

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