Common use of Data Security Policies and Procedures Clause in Contracts

Data Security Policies and Procedures. Both parties shall establish data security policies and procedures to ensure compliance with this section that are designed to: (a) ensure the security and confidentiality of Customer Information; (b) protect against any anticipated threats or hazards to the security or integrity of such Customer Information; and (c) protect against unauthorized access to or uses of such Customer Information that could result in substantial harm or inconvenience to any customer. Further, Seller agrees, at its own expense, that it shall transfer Confidential Information, especially Cardholder Account information, to Purchaser in a secure fashion, which includes, but is not limited to, transferring the data electronically and in an encrypted format. If data cannot be transferred electronically, Seller and Purchaser shall arrange for Purchaser’s representative to travel and collect the data file at Seller’s expense. Seller agrees to indemnify and hold Purchaser harmless from all claims, damages or expenses related to the loss or unauthorized access resulting from the transfer of such Confidential Information by Seller to Purchaser.