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In one the biggest ever threats to consumer data security, CardSystems Solutions' security was breached in May this year, with some 200,000, mainly Visa and MasterCard records stolen, although the company did not inform the FBI until June.

Visa spokeswoman Rosetta Jones explained that CardSystems 'has not corrected, and cannot at this point correct, the failure to provide proper data security for Visa accounts'. Consequently banks that issue Visa cards gave it until 31 October to switch to another payment processing company.

She added that the breach occurred when CardSystems was holding account information - ostensibly for research purposes - that it was prohibited from keeping under the terms of its contract with Visa

CardSystems said it was 'disappointed and very surprised' by Visa's decision.

American Express said that it would also cut ties in October, but MasterCard said that it expects CardSystems's current review of security to prevent further breaches and is sticking with the company.