Capping Interchange Fees Won’t Enhance Consumer Welfare

Each year, financial merchants such as Visa, Mastercard, American Express, and banks process 39.6 billion card transactions in the United States, amounting to 108.6 million transactions each day. To ensure these transactions are processed quickly and securely, financial merchants and banks impose interchange fees on transactions, more commonly known as swipe fees. Last year, merchants businesses paid financial […]

The Evolving Security of Credit Cards

Another breach of consumer credit card information was reported by Hudson’s Bay, the owner of Lord and Taylor and Saks stores.  Hudson’s Bay said “it was the victim of a security breach that compromised data from payment cards that had been used at some stores in North America, and that it had “taken steps to […]

Time and Security at the Checkout Line

For retail payments there are six protocols in common use – cash, check, credit card swipe and sign, debit card swipe and pin entry, EMV chip and sometimes sign, and mobile payments (using near field communications) with a second form of authentication. Cash and check are less commonly used.  Cash payments challenge some of the […]

Forbes: Consumers, Businesses Hindered by Shoddy New Credit Cards

The poorly planned, poorly executed transition to chip-enabled credit cards claims another victim. This time, it’s not just the everyday American consumers stuck with lackluster security measures and it’s not just the nation’s retailers who have endured costly equipment upgrades while taking on more financial liability. This time, it’s VeriFone – a $2 billion company […]

ACI in Forbes: “Chip and PIN” Is Ready Now

The ongoing discord between retailers and the banking industry highlights the disagreement regarding payment cards and where the technology is headed. While the financial industry often deflects calls for improving credit card security by conjuring up the prospect of a mobile and biometric payment world, those days are too far from now for us to […]

ACI in Forbes: One Year Later, Consumers Still Lack Protections

This time last year, I was warning consumers about the “elephant in the room” during the holiday shopping season. The “elephant” I was referring to was the alarming lack of security whereby consumers had to rely on outdated magnetic stripe and signature credit cards to protect their personal information. Since then, an October 1st deadline […]

Credit Card Security’s Bait And Switch

In early October, the nation’s premier law enforcement agency, the Federal Bureau of Investigation (FBI), issued a consumer protection advisory regarding new microchip equipped credit and debit cards that warned consumers the new cards with chip and signature technology may not be as secure as they have been led to believe. But within hours, that […]