With a retail industry lobbying group visiting Capitol Hill offices this week, ABA sent a memo today to members of Congress rebutting retailers’ claims about data security. The memo emphasized that consumer data security starts with retailers, not with the PIN card mandates that retailers are pushing.
The memo explained the robust data protection standards that customers of banks enjoy and called for bringing all participants in the payments system — including merchants — up to the same standards. “Yet retail groups are actively opposing this basic level of security,” ABA said. Instead of the retailers’ favored PIN system, ABA emphasized that the chip cards now widespread are more effective at preventing counterfeiting.