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Setting the Record Straight: New Analysis Demonstrates the Durbin Amendment Has Not Led to Consumer Savings or Employment Gains, Contrary to Retailer Claims
The Electronic Payments Coalition (EPC) released a new analysis today that directly dispels inaccurate claims in a report frequently cited by merchant and retailer groups on the effects of the Durbin Amendment. Retailer claims that the Durbin Amendment has benefited consumers and supported employment gains are based on a flawed study that relies on faulty assumptions. Independent data from the Federal Reserve verifies that merchants are the sole beneficiaries of interchange price caps, at the expense of both consumers and the financial industry. Continue Reading
A statement from Molly Wilkinson, executive director of the Electronic Payments Coalition (EPC) in support of the Data Security Act of 2015, H.R. 2205: Despite recent claims from representatives of the retail industry, security measures to protect sensitive customer information are needed across industries that handle consumers’ personal and financial information. Retailers are not currently held to any Federal security standards, yet a recent Morning Consult poll found 90 percent of consumers agree stores and retailers should be held to similar standards as banks and financial institutions to keep data secure and private. Banks and financial institutions go above and beyond the requirements of the Gramm-Leach-Bliley Act (GLBA) to safeguard their customers’ information and the same effort should be required of others that handle sensitive customer data, such as credit and debit cards. There are numerous safeguards implemented by financial institutions that retailers currently do not abide by, such as: … Continue reading
A statement from Molly Wilkinson, executive director of the Electronic Payments Coalition (EPC) praising testimony from Professor Todd Zywicki at the U.S. Senate Committee on Banking, Housing, & Urban Affairs hearing today: Price controls on debit card transactions, which were enacted through the Durbin Amendment, have created a hand out for retailers that so far has reached $36 billion and continues to rise each year. Continue Reading
EPC To Fed Chair: Durbin Amendment Rewards Retailers $36 Billion in Additional Profits, But Provides No Relief to Consumers
Electronic Payments Coalition Executive Director Molly Wilkinson today wrote Fed Chair Janet Yellen to express concerns regarding the detrimental effect the Durbin amendment is having on consumers. In the letter, which was submitted pursuant to the regulatory review being conducted under the Economic Growth and Regulatory Paperwork Reduction Act of 1996 (EGRPRA), Wilkinson details how the Durbin amendment never fulfilled its promise of lowering costs to consumers at checkout, but has instead allowed retailers to pocket approximately an additional $36 billion in profit. Citing a recent August 2015 Federal Reserve Bank of Richmond study, Wilkinson notes that few merchants are found to reduce prices or debit restrictions as debit costs decrease. In another survey 92% of the nearly 2000 consumers questioned reported that prices rose or stayed the same over the previous year. “…[this] study confirms what common sense and economic theory tell us – that is, retailers never had any … Continue reading
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 … Continue reading
The recent deluge of data breaches at major retailers around the country has caused millions of consumers’ personal and financial information to be exposed. Thankfully, the House Financial Services Committee today advanced an important piece of legislation that will better protect consumer data by ensuring that retailers are held to common sense data security standards that were adopted by the payments industry years ago. The Data Security Act of 2015 (H.R. 2205) will ensure that retailers adopt scalable, flexible common sense data security standards that protect consumers’ personal and financial information when in the hands of retailers, which is exactly what consumers want. Just this morning, a Morning Consult poll found that 92 percent of voters agree that stores and retailers should adopt the latest technology and best practices to keep Americans secure. The payments industry is constantly working to improve data security through technologies like EMV, tokenization and biometrics … Continue reading
Today the House of Representatives Committee on Energy and Commerce Subcommittee on Commerce, Manufacturing, and Trade held a hearing to discuss the mobile payments landscape. Mobile payment solutions, such as Apple Pay, Samsung Pay and others increase security, competition and consumer choice. For years the payments industry has been a leader in mobile payments and has worked with cross-industry partners to introduce new payments methods and develop security solutions that work across a wide range of platforms.
Today a small number of Attorneys General signed onto a letter regarding chip and PIN. Contrary to the claims of a small group of retailer trade associations, PIN would have done nothing to prevent the breaches at Target, Home Depot, Michael’s and other retailers. This campaign to mandate PIN is an attempt to prevent the adoption of common sense data security standards, which could protect consumers by preventing hackers from stealing data from big box retailers. Securing the payments system requires multi-layered security solutions, including chip cards, tokenization, biometrics and encryption that devalue data and protect consumers from fraud. Instead of investing in this misguided campaign, retailer associations should work with their members to adopt these valuable data security solutions that the payments industry has committed to implementing.
Electronic Payments Coalition Applauds Congressman Luetkemeyer for Supporting Common Sense Security Standards for All
Consumer data protection is a major concern for Americans, particularly given the recent spate of large scale retailer data breaches. As such, it is increasingly important that Congress identify common sense security solutions to protect consumers’ personal and financial information. In an effort to advance this cause, Congressman Luetkemeyer announced his support today for the Data Security Act of 2015. “Consumers deserve to know that their information is safe in the hands of retailers,” said Sam Fabens, spokesperson for the Electronic Payments Coalition. “We applaud Congressman Luetkemeyer for supporting this important piece of legislation and hope that it will encourage others in Congress to follow suit.”
Today, the U.S. House Small Business Committee will hold the second part of a hearing entitled “The EMV Deadline and What it Means for Small Businesses,” which will address payment security in the United States. “Instead of providing Congress with useful information about how to help small businesses protect consumer data, large national retail associations are using this hearing to push for a ‘security’ solution – PIN – that wouldn’t have done anything to stop the breaches at Target, Home Depot or Michaels,” said Sam Fabens, spokesperson for the Electronic Payments Coalition.