The following content is Electronic Payments Union.
Today, we swipe our cards for almost everything: buying products online, shopping for groceries, donating to charity, etc. You probably don’t realize what goes on behind the scenes to make this easy access possible.
These secure, seamless transactions are possible thanks to a robust payment processing network that is authorized and protected by banks and card companies. These companies’ extensive global financial systems enable safe, reliable and efficient electronic payments for everyday purchases. Most of us never give the security of our data much thought, but we don’t need to. These systems invest heavily in protecting our transactions, giving us peace of mind when we swipe our credit card.
But not every industry is investing so much in keeping things safe. 780,000 data records Retailers regularly suffer data breaches and malware attacks, resulting in data loss due to breaches and hacking attempts.
Recent legislation The bill, introduced by Sens. Dick Durbin (D-Ill.) and Roger Marshall (R-Kan.) and supported by their big-retail allies, would impose new restrictions on how credit card transactions are processed. The bill would allow cards to be routed through alternative networks, allowing companies to cut corners and switch to cheaper, less secure routers.
Financial institutions have repeatedly Billions of dollars invested When it comes to data security, banks and credit unions have an advantage because they fundamentally understand the importance of protecting their customers’ sensitive information. They operate under strict data security compliance requirements and better than anyone, they understand the nuances involved when dealing with sensitive financial information.
If the Durbin-Marshall bill becomes law, personal data would move out of the hands of trusted financial networks and into the hands of retail giants willing to risk the security of their customers’ data in order to increase their profits.
a report A report from the Progressive Policy Institute (PPI) offers further insight into how shifting routing decisions from banks to corporate retailers increases the risk of data breaches. The report highlights significant data breaches experienced by major retailers such as Target, Home Depot, and Wawa over the past decade.
These retail giants didn’t protect consumer data until it was too late. Home Depot I didn’t The failure to appoint a Chief Information Security Officer until after the massive data breach, and the Attorney General in the Wawa case Identified The convenience store and gas conglomerate failed to take adequate security measures to protect consumer data.
Americans have economic issues to worry about, and they can’t always be worried about the security of their data.
The security of consumer data isn’t the only thing the Durbin-Marshall bill targets in cuts — it also puts credit card rewards programs at risk, threatening the financial security of low- to moderate-income Americans.
a New Research Research shows that approximately 70% of low-income cardholders use rewards cards, with usage spiking in late summer (back-to-school season) and November and December (holiday season). Families seek to offset extra expenses during this time of financial uncertainty by using rewards to help offset costs. Passage of this harmful bill would make this impossible.
It’s time for Senators Durbin and Marshall to decide who they really represent — hard-working ordinary people or big-box corporations. This shouldn’t be a difficult decision.
