A server update impacts El Palacio de Hierro’s payment and billing systems
What: El Palacio de Hierro is experiencing significant issues with its payment and billing system due to a server update, affecting customer transactions, credit card services, and access to account information since August 14.
Why it is important: This incident underscores the need for robust contingency plans and clear communication strategies during system outages, especially for handling sensitive financial data and maintaining customer trust.
El Palacio de Hierro has been experiencing significant issues with its payment and billing system since August 14. The problems stem from a server update that has taken longer than anticipated, affecting the functionality of the company's website and digital platforms. Customers have been unable to pay their store credit cards, access or download account statements, or generate invoices. Some users have also reported that certain payments have not been correctly reflected in their accounts.
The company has acknowledged the issue, explaining that the server update process initiated the previous week has caused operational interruptions, particularly in services related to the Palacio Card. El Palacio de Hierro has announced that it will offer accommodations to its cardholders for late payments and transactions without penalties once the platform is restored. However, no specific date for the system's return to normal operation has been provided.
This incident follows a similar situation faced by another Mexican retailer, Coppel, which reported system failures due to a cyberattack in April. Coppel's electronic operations, including card payments and purchases, were inactive for about a week, and access to the company's mobile application was suspended.
ring its recent growth and expansion. In 2023, the retailer reported an 11% increase in sales and a 41% rise in profit, with particularly strong performance in its online channel. The company has also been actively expanding its brand portfolio and enhancing its luxury offerings.
This disruption highlights the broader challenges faced by retailers in maintaining robust and secure payment systems while implementing necessary technological upgrades.
