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OP-ED: A decade later, it’s time to repeal the failed Durbin Amendment
July marks the 10th anniversary of the Dodd-Frank Act, which includes the controversial Durbin Amendment—a policy that has done nothing but harm consumers and financial institutions since its inception. Congress passed the Durbin Amendment based on assertions that lowering debit card interchange fees—small charges merchants pay banks when a customer makes a purchase through a debit card—would allow merchants to lower prices for consumers while at the same time not harming credit unions and community institutions. The payment card market, however, like the popular reservation platform Open Table, is a two-sided market with two sets of customers: consumers and businesses. Government cannot intervene on behalf of one group of customers without taking away from the rest. Continue reading
OP-ED: Is There a Place for Cash Payment in a Post-COVID-19 World?
The COVID-19 pandemic has upended virtually every single industry and government alike, creating new challenges for how we go about our daily lives. As a result, trends have emerged from this new reality including how merchants serve their customers in a safe and reliable way, among them a rising reliance on electronic payment methods. Almost overnight, electronic payments became the preferred method of payment among small businesses and their customers. This is largely due to the hygienic benefits that contactless methods offer, as cash requires close contact and exchanging of property, both of which increase transmittance of the virus and should be avoided if possible. Continue Reading
OP-ED: The Pandemic Lifeline for Small Business
In the United States, there are approximately 30.7 million small businesses employing as many as 60 million Americans. According to the Small Business Administration, from 2016 to 2019 just under 2 million new small businesses were created and as a result, 3.1 million jobs. However, due to the outbreak of the coronavirus, small businesses have been hit exceptionally hard, as more than 41 million Americans have lost their jobs in just 10 weeks. Across the nation, non-essential businesses had to shut their doors to help flatten the curve. While it may be essential from a public health perspective to do everything necessary to limit the spread of this virus, we cannot overlook the devastating effect that mitigation efforts have had on small businesses. Continue Reading
OP-ED: Contactless Payments Are Paying Off for Consumer Health
The onset of the novel coronavirus has caused a seismic shift in the daily lives of Americans. While recent data in the fight against this pandemic are encouraging, we’re not out of the woods yet, and we will be slow to return to life as we once knew it. Social distancing, working from home, and a shift to online shopping will likely continue. Small businesses are turning to curbside delivery, grocery services are offering pick-up or delivery, and retailers are heavily reliant on online purchases. But as consumers begin to shift back to making purchases in person, protecting their health will be paramount. Luckily, the financial institutions that support the electronic payments system made investments long before this crisis that will help keep people safe and their funds secure. Continue Reading
OP-ED: Electronic Payments Industry Rallies Around Consumers Amidst Coronavirus
As the world grapples with COVID-19, consumers are being forced to adapt their day-to-day routines. Millions of Americans are choosing to have their groceries delivered, learning to work remotely, and relying more heavily on online banking and payment systems. We are even seeing merchants transition to a “card only” payment method for fear that the virus could spread through the use of cash. Cameron’s Deli in New York is one of many restaurants taking this safety precaution and asking its customers to pay through contactless methods such as Apple Pay or Google Pay. In today’s climate, contactless payments should no longer be the secondary or tertiary form of preferred payment, especially for older generations or people with underlying health conditions. As a society faced with a pandemic, we are embracing the virtual economy, but we must be vigilant while doing so. Continue Reading
Op-ed: Protecting Consumers from E-Skimming Attacks this Holiday Season
EPC Chairman of the Board, Jeff Tassey, published an op-ed on Morning Consult about how consumers can protect themselves from e-skimming.
OP-ED: The Future of Payments Technology Is Bright
Card networks and financial institutions are preparing for the future of payments by expanding their investments into artificial intelligence (AI) and machine learning to quickly identify instances of fraud. Unfortunately, retailers have yet to show the same amount of dedication when it comes to investing in payments technologies of tomorrow, hindering innovation and leaving consumers at risk of future data breaches. From the shift to EMV-enabled payments cards and the rapid expansion of contactless transactions to the latest in tokenization and biometrics, investments in the future of these emerging payments technologies will only better serve the demands of consumers, retailers and card networks. So why won’t retailers invest? The problem is PIN. Continue Reading
OP-ED: Artificial Intelligence Should Be the Next Big Payments Push
When we think about artificial intelligence (AI) and machine learning, the first image that comes to mind might be a chess-playing computer or a driverless car. In addition to such futuristic applications, these cutting-edge technologies are already changing and enhancing many aspects of our day-to-day lives, including how we make purchases and protect our valuable financial information. Consumers today are increasingly demanding more flexible ways to pay when they buy goods and services, from groceries to car washes. As a result, card networks and financial institutions have made enormous investments in developing lightning-fast and secure ways for customers to pay for goods and services, many of which rely on machine learning and AI. Continue Reading
OP-ED: Retailers need to do more heavy lifting on payment security
The availability and convenience of electronic payments hinge on them being a secure method of exchanging money. For now, consumers are still willing to use these technologies, but retailers risk eroding trust in commercial institutions with their lack of security preparation. Consumers expect the retail and payments industries to move forward together in developing safer, more secure technologies that will protect consumers from the intrusion and disturbance of fraud. Clearly, the data breaches of the past few years have made an impact on consumer attitudes, and they are becoming more vocal. Retailers must decide if they will heed this call and do the right thing by investing in the security we need today and the innovation of tomorrow. Continue Reading
Op-Ed: National data security standards are better than PIN
The National Retail Federation (NRF) has launched an ad campaign to advocate for “uniform national” data breach standards for “all affected industries.” Welcome to the cause. The financial services industry already is subject to uniform standards and continually has fought for national rules to cover all affected industries. Retailers opposed these efforts. Instead groups like the Retail Industry Leaders Association push lawmakers and regulators to instead adopt a government mandate that would cost billions to implement and do little to protect consumers. Barclays of London introduced Personal Identification Numbers (PINs) in 1967, the year the Beatles and Monkees battled for the top of the charts. That music is timeless. PIN is not. Because PINs are a static data element, they don’t protect against counterfeit or card not present (CNP) fraud, which together account for about 85 percent of total U.S. card fraud. According to the Aite Group, it would cost … Continue reading