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Industry News

First Data processing error leads to duplicate transactions

By Joseph Trigliari

05/10/2010 - Customers faced numerous duplicate transactions at Hannaford supermarkets in Maine last Thursday when the processing company First Data experienced a “technical error.”

The equipment malfunction affected Visa and MasterCard processing, and a representative from the company said it is currently alerting retailers, merchant accounts, and merchant services in attempt to fix the accounts of all affected by the end of the week.

This is not the first time Hannaford has experienced credit card processing issues while using First Data products.

In 2008, the store experienced a large-scale security breach when malware was installed on every single one of its point-of-sale terminals. Across six states, 4.2 million account numbers were compromised.

Hannaford met industry security standards, but its systems were still susceptible to intrusion.

"Just because they are compliant, it doesn't mean they are safe," Graham Cluley, technology consultant for the computer security Sophos, told the Boston Globe. "Clearly, consumer confidence is being shaken by this constant stream of breaches."

While the 2008 case involved a sophisticated hacking scheme, the most recent Hannaford point-of-sale terminal errors were a result of an equipment glitch. 

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