Real Clear Policy: For the Sake of Consumers, Kill the Durbin Amendment

Despite trying to cut costs for consumers and businesses, research has consistently shown the Durbin amendment denied consumers access to no-fee and low-fee financial services. Moreover, this denial disproportionately harmed minority and low-income communities, preventing them from accessing formal lines of credit. The proposal to lower and cap interchange fees for credit card transactions would exacerbate […]

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 […]