Credit Card Fees - $100,000 Breach Coverage Monthly Fee - $9.95/month

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Just noticed on my TransFirst Merchant Credit Card Statement -- a Credit Card Fee for - $100,000 Breach Coverage Monthly Fee - $9.95/monthHadn't really picked up on that prior to today.

Seems kind of steep - $119.40 per year.Was told by the rep that this covers cost of replacing customer credit cards, etc, if there is a breach at our office.I'm a small office and try not to keep a lot of CC #'s on site - so doubt we would be at major risk.

Thoughts?  Sounds like a racket, but would appreciate other thoughts. Locke, MD===============================This company talks about this type of insurance this way (not sure if it is the same as what TransFirst covers, but same concept) ...  

     http://www.secureconnect.com/services/packages/elite/breach-protection.html

Breach Protection ProgramDesigned to provide an extra layer of financial protection, the SecureConnect Breach Protection Program ensures a higher level of business security and financial confidence. Most business owners don’t think about the consequences of a data breach until it directly affects them. This program is intended to help you meet the expenses resulting from a suspected or actual data breach—expenses that could jeopardize the future of your business.

Under the program, your business is protected from financial losses in several critical areas, covering up to $100,000 of data breach expenses including:

Forensic Audit Expense

Cost associated with the mandatory 3rd party forensic investigation required by the card associations for suspected or confirmed breaches

General cost range: $8,000 - $20,000 for Level 4 merchants involving a single location

Card Replacement and Monitoring Costs

Issuer cost associated with compromised card replacement or account monitoring to watch for potential fraud

General cost range: $3 - $5 per card replacementAssociation Fines

Association non-compliance fines that may be assessed depending on the size of the business and circumstances that led to the breach

General fine range: $5,000 to upwards of $500,000Compliance Cases & Account Data Compromise Recovery Costs

Issuer fraud loss recovery from fraudulent transactions attributable to the compromiseGeneral cost range: Will vary depending on the size and scale of the breach

Visit our PCI Packages page to learn more about the services we provide.