BANKS NOT LIKELY TO RECOVER DEBIT BREACH LOSSES FROM MERCHANTS.

The article focuses on the message delivered by Nessa Feddis, senior federal counsel of the American Bankers Association, at SourceMedia's CardForum in 2006, which confirms that merchants could be held liable for losses on debit cards arising from a breach of their processing systems. Federal regulations governing debit card losses do not protect merchants from liability if their locations are proven to be the source of a breach of personal identification number-debit information.