The Congressional House Financial Services Committee recently heard testimony on the need for better payment security standards. In light of widespread data breaches and credit card fraud, many individuals within the e-commerce and banking industries are stressing the necessity of a national standard.
Legislative Action Against Fraud
Lawmakers have often shied away from taking action on rampant credit card fraud, leaving consumers, merchants, and banks to fend for themselves. However, since the boom of e-commerce prompted a global increase in data breaches and identity theft, nationwide legislative measures have been called for to address the growing problem.
The House Financial Services Committee heard testimony from Jason Oxman, the CEO of the Electronic Transactions Association. Oxman called for a uniform, national requirement for data breach notification and strong data protection standards to help protect merchants and consumers. These two measures would increase payment security on top of the introduction of EMV cards, scheduled to be completed in the U.S. by 2017.
Why Payment Security is so Important
Payment security is vital to the world of e-commerce. As more people shop online, the chances of experiencing large-scale credit card fraud increases. Some states have data breach laws in place to set significant payment security standards, but any national legislature would override those, making a unified front against cybercrime.
It’s not just consumers who can suffer the consequences of poor security standards. Merchants are sometimes held liable for any fraud that occurs through their systems, and banks can sometimes have to pay millions to issue new credit cards to their merchants or set up new accounts entirely. This can all be prevented with a higher standard for payment security.
Instabill provides merchant accounts for retail and e-commerce businesses all over the world. As we help our clients find better payment processing solutions, we care about the state of payment security. Through our services, we can provide qualifying merchants with methods to obtain PCI compliance, SSL certification, and more security standards to reduce their risk of fraud.
To learn more, simply contact a live representative at 1-800-318-2713.