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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
Once Again, Voters Call on Retailers to Pull Their Weight When It Comes to Payments
WASHINGTON (June 18, 2018)—Financial institutions continue to dedicate resources towards developing and implementing innovations to make payments more convenient and secure, just as voters expect them to do. However, a majority believe both retailers and large financial institutions should invest in innovation, according to new Morning Consult survey data. “Time and time again, retailers have shown they are more interested in cutting their own costs instead of making the necessary upgrades to make checking out more efficient and protect customers from fraud,” said Jeff Tassey, chairman of the board of the Electronic Payments Coalition (EPC). “While financial institutions remain committed to innovation in order to strengthen consumer choice, retailers must step up and catch up to the times.” With a majority of consumers trusting innovative payments authentication methods, such as biometrics and encryption, retailers must fulfill their role in the payments ecosystem by adopting and supporting new technologies. In fact, … Continue reading
EPC Statement on Secure Payments Partnership
The below statement can be attributed to Jeff Tassey, Chairman of the Board of EPC, on the creation of the Secure Payments Partnership: “Here retailers go again, lobbying Washington for further regulation in the interest of cutting their own costs instead of protecting their customers from fraud. Despite claims, all players in the payments ecosystem—including retailers—have the opportunity to provide feedback and participate in the process. We must all be committed to providing consumers with security and innovation without impeding consumer choice.”
Financial Institutions Still Trusted to Innovate and Protect Payments, but Retailers Must Do More
Voters still trust financial institutions over retailers to develop new payment technologies and safeguard personal information during the checkout process, according to new Morning Consult survey data. In fact, a strong majority of voters expect retailers to step up when it comes to payments. Four in five voters agree that stores should update their technologies to ensure customers have a range of payment options at the register and that retailers should share in the infrastructure fees that make electronic payments possible. “Financial institutions continue to develop new technologies to make electronic payments quicker, safer, and more convenient—all of which make retailers’ and consumers’ lives better,” said Jeff Tassey, chairman of the board of the Electronic Payments Coalition (EPC). “However, the onus is on retailers to step up and protect their customers at the checkout. As the recent data breach at Lord & Taylor showed, retailers must be proactive and do … 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
Video: Electronic Payments 101
Eric O’Neill: Security Must Evolve to Keep Consumers Safe From Credit Card Fraud
Cash is no longer king in today’s commercial world. Credit and debit card payments have exploded in the last decade as the preferred method of payment for transactions worldwide. And with this drastic shift, banks and retailers must ensure consumer data is protected at all stages of transactions. Continue Reading
Op-Ed: New Report Shows Benefits Of Payments Innovation
We have officially entered retailers’ favorite time of year: holiday shopping season. The next month should be joyful — but it might not be for consumers. Imagine unwrapping a notice that says your payment card was compromised at one of the dozens of merchants you visited on Black Friday or Cyber Monday. It’s becoming a more frequent occurrence, and even though banks and credit unions typically make consumers financially whole for fraudulent transactions that result from a retailer breach, individuals are still deeply affected, spending hundreds of dollars to keep fraudsters from wreaking havoc on their credit history months, or even years, later. Continue Reading
Report Demonstrates Need for Choice and Innovation in Order to Prevent Payment Fraud
Today, the Electronic Payments Coalition (EPC) released a report that found multiple dynamic fraud technologies are necessary to combat payment-card fraud. EPC analyzed information from 20 countries that have varying levels of EMV adoption and use a mix of PIN and signature authentication. EPC found that chip-enabled smartcards—also known as chip cards—have dramatically reduced counterfeit card fraud. In countries where chip cards comprise at least 75 percent of payment cards, counterfeit fraud has declined by 84 percent over the last 11 years—even as the number of in-store transactions has increased 21-fold. The report also examined the use of PIN and signature authentication, with research showing “there is no clear relationship between total card fraud and a country’s preference for using signatures or PINs” in conjunction with payment cards. This point emphasizes the need for choice—and not a government mandate—when it comes to payment-card security. “This report confirms what we’ve said … Continue reading
Voters’ Views Highlight Importance of National Data Security Standards
More than half of voters are concerned with data breaches when purchasing goods at a large retailer, according to new Morning Consult survey data, underscoring the need for national data security standards. As the number of retail data breaches increases, consumers continue to place more trust in banks and card companies when it comes to security and innovation. The survey showed there is a 32-point margin between people who trust card companies versus people who trust retailers when it comes to keeping card information secure. Plus, banks and card companies are the only entities a majority of voters place a lot of trust when it comes to the security of their personal information. While financial institutions are subject to the data security requirements set by the Gramm-Leach-Bliley Act (GLBA), there are no similar national standards for retailers. The Electronic Payments Coalition (EPC) has long advocated for national data security standards … Continue reading