Merchants in the hospitality industry are dependent upon accepting payment by credit or debit card. Many customers simply do not carry cash with them, making the ability to accept payment cards a necessity for hospitality businesses.

This trend and the increased volume of payment card transactions greatly increases liability exposures for merchants. Potential liabilities are passed to merchants from banks and payment processors through a contract, as well as how the insurance coverage available to them specifically addresses these contractual exposures.

Third-party claims resulting from credit card data breaches can be much different than those involving other forms of personally identifiable information. Card-issuing banks, merchant banks and payment processers are all addressing their needs for recovery following a payment card breach through a complex contract chain that passes liabilities down to the merchant.

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