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82 percent of voters agree that consumers should have a choice about what type of payment technology they want to use, according to a new Morning Consult poll released today.
Almost one year after President Obama’s Summit on Cybersecurity and Consumer Protection, this new survey reveals consumer attitudes toward cybersecurity and electronic payments. Of the 2,028 registered voters surveyed, 75 percent agree stores should move as quickly as possible to adopt new forms of electronic payments that would help protect consumer information. Over six in 10 voters (63 percent) say stores and retailers should offer a number of payment types that consumers think are secure, compared to less than two in ten (19 percent) that say stores or retailers should only accept payment types that store prefers.
“The poll clearly shows that choice and security are customers’ priorities when making electronic payments. Consumers want diversity in payment options, which serves the dual purpose of giving customers what they want at the register and decreases the likelihood of security breaches,” said Molly Wilkinson, executive director of the Electronic Payments Coalition (EPC). “Retailers and the payments industry must work together to serve their customers’ best interests and protect their information—any push to mandate only one form of payment will not protect consumers from fraud.”
The survey also shows:
- a majority of consumers are satisfied with their banks (81 percent) and credit card companies (76 percent)
- 79 percent are satisfied with the security of their financial information at their bank
- 86 percent are satisfied with the ease of making a purchase with their credit card
- eight in 10 (77 percent) are satisfied with the security of their financial information when using their credit card
- 90 percent of consumers agree stores and retailers should be held to the same standards as banks and financial institutions to keep customer data secure
- 83 percent agree that while retailers may prefer a particular form of electronic payments, they should look at adding more options for their customers
EPC and its members are committed to providing consumers with secure electronic payment methods and to supporting innovation to increase security. One step toward greater consumer protection is required notification of data breaches and access to credit monitoring. President Obama’s proposal to inform consumers of data breaches is favored by six in 10 of voters surveyed—with support extending across party lines—with 51 percent of Republicans and 72 percent of Democrats saying required notification of breaches will make their personal financial information more secure.
Morning Consult conducted a national survey of 2,028 registered voters from January 21-24, 2016. Results have a margin of error of ±2 percent. More information is available at www.electronicpaymentscoalition.org.
Contact: Kasia Mulligan
Phone: (202) 627-0544
About the Electronic Payments Coalition
The Electronic Payments Coalition (EPC) includes credit unions, banks, and payment card networks that move electronic payments quickly and securely between millions of merchants and millions of consumers across the globe. EPC’s goal is to protect the value, innovation, convenience and competition in today’s growing electronic payments system. EPC educates policymakers, consumers and the media on the system’s role in economic growth, and the importance of protecting consumer choice and stability for the continued growth of global commerce.
Capping interchange fees has been tried in some countries around the world. Despite claims that these efforts were for the benefit of consumers, the real world results have shown the opposite to be true. In every instance, consumers faced higher fees for banking services, a reduction in benefits and services and saw no return in the form of lower prices from merchants despite promises by merchants and policy makers to pass savings to consumers.
But Sam Fabens, spokesman for the Electronic Payments Coalition, said that while the EMV transition is gradual, it is happening. “There have been more chip cards issued in the U.S. than anywhere in the world,” he said, adding that, “it was designed to be a process.”
“In some cases, merchants looked at their risk profile in terms of when to make the transition (to EMV-enabled terminals), and small ones may have decided to wait for natural update,” he said.
At first blush, you might well wonder why anyone would be against loyalty programs. Whether you earn points by shopping at a particular store or by using a particular credit card, you are rewarded for your loyalty. Maybe you exchange your points for a discount on airfare for a sun-filled vacation. It’s all voluntary, and everyone involved seems to benefit.
Sen. Dick Durbin, D-Ill., slipped into the monstrous 2010 Dodd-Frank financial regulation bill a favor long sought by big-box retailers, such as Wal-Mart. The Durbin amendment, as it is known, imposed price controls on interchange fees for debit cards. Interchange fees are what banks and card issuers charge retailers for processing payments. Many consumers prefer to use cards instead of cash, so it’s advantageous for retailers to provide that as an option.
Parishioners text tithes to their churches. Homeless street vendors carry mobile credit-card readers. Even the Abba Museum, despite being a shrine to the 1970s pop group that wrote “Money, Money, Money,” considers cash so last-century that it does not accept bills and coins.
Few places are tilting toward a cashless future as quickly as Sweden, which has become hooked on the convenience of paying by app and plastic.
Inside the Beltway, a battle has been raging for close to a decade pitting retailers against America’s credit card companies, better known as Visa V -0.38%, MasterCard MA +0.00% and American Express AXP +1.43%. The fight has occurred on different fronts ranging from cyber-security to interchange fees, the fees retailers pay to allow customers to use credit cards. In 2010, with the enactment of the Dodd-Frank bill, which contained a retailer desired cap on debit card fees, many believed the retailers would declare victory and go home but it appears they are back seeking another bite at the crony capitalist apple.
Christmas is the time for goodies and gifts but lobbyists for the retail industry’s are hoping Congress grants their wish list of crony capitalist giveaways that will cost consumers while increasing their own profit margin.
Andrew Langer, the President of the Institute for Liberty, is pulling the alarm on the crony scheme pushed for by lobbyists for the retail industry to impose federal price controls on credit card fees:
“Congress should reject European price controls,” that “while America’s regulatory costs have ballooned since 2005, Europe’s have positively skyrocketed. Thankfully, the United States has not copied the statist policies in many European counties that hamper economic growth. But right now, well-funded lobbyists are pushing a European idea that the government should set price controls on payment processing fees. These same lobbyists were successful five years ago in implementing a cap on card swipe fees, yet that was not enough for them. They are back for more. This time they’re clamoring for European-style price controls and claiming that the fees are weighing down the economy.”
Most in politics can understand it when those firmly on the progressive side make the argument that we in America need to enact public policy more like that of Europe. But when one American industry is locked in a battle with another, and seeks to use the force of the federal government to intervene in that fight, Members of Congress should know not to buy that bill of goods when one industry wants the federal government inflicted on another just to increase their bottom line at the expense of the other. Such is the case with the latest push by the retail lobby to enact European type price controls on the interchange fees charges to retailers for accepting debit and credit cards from their customers.