ABOUT THE ELECTRONIC PAYMENTS COALITION
Who We Are
We are the credit unions, community banks, payment card networks, and financial institutions who support the backbone of our economic system: electronic payments.
We believe investing in new technologies and legislating national data security standards will create a stronger payment system.
Most of all, we are committed to the protection of Americans from fraud and data breaches. Whether you represent a metropolitan area, the suburbs, or rural America we are committed to ensuring your consumers have access to a secure and reliable payment system.
What We Believe
With hacking and data breaches on the rise, the protection of Americans’ personal financial in-formation is more important than ever. We cannot allow criminals to continue taking advantage of a costly combination of outdated technology and inconsistent regulations. Consumers deserve a uniform standard to keep their information secure. The financial sector already abides by a federal standard and it’s time to bring retailers and other industries under the same banner. Fur-ther, all industries in the payment ecosystem must invest equally if we are to meet the challenge of data security. Those who rely on the bare minimum in protection have and will continue to ex-perience the largest data breaches.
Technological advancements always move faster than public policy. Nowhere is this truer than with digital payments, where outdated ideas like PIN numbers are no match for modern criminals. While EMV chip technology brings a new layer of security to credit and debit cards by using a unique one-time code to authenticate card transactions, for us it’s just the beginning. We believe encryption, tokenization, and biometrics, among other cutting-edge technologies, must be embraced in order to stay a step ahead. We hope Congress will be a forward-looking partner in fostering these advancements.
Investing in A Strong and Competitive Payments System
The safe and secure system we enjoy today took decades and billions of dollars in investment to build. The maintenance and system operations require constant—and expensive—regular up-grades to maintain the latest in technology and cybersecurity. Interchange, the small fee retailers pay for a credit or debit transaction, helps cover a wide variety of costs for card-issuing banks and credit unions including customer service, system efficiency, the costs of online transactions, data protection, and card production costs. In order to keep the financial system working we believe both financial institutions and retailers must pay their fair share and that a competitive market does a better job of spurring the necessary revenue than price controls.
Consumer Rewards and Benefits
Debit and credit card reward programs are not just window dressing. For some it can be a life-line, especially low-income consumers. Unfortunately, the unintended consequences of 2010 interchange legislation (which capped retailers’ obligation to invest in the system) led to a reduction in these benefits. It also led to a decline in free checking, making it harder for some Americans to maintain a bank account. Further, consumers were told that the billions retailers saved from this legislation would be passed on in the form of savings. That promise was never fulfilled. There is no reason everyday Americans should be deprived of these benefits, and we look for-ward to working with Congress to advance policies to ensure they receive them.
Questions? Suggestions? We want to hear from you.
The Electronic Payments Coalition
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