Removing Barriers Blog

House Small Business to Hold a Second Hearing on EMV Implementation
Posted October 18, 2015 by CUNA Advocacy

On Wednesday, the House Small Business Committee will hold a hearing on the effect of EMV implementation on small businesses.  This is the second in a series of hearings the Committee has held on this topic.  Late last week, CUNA joined with several other financial services trade groups in submitting a letter for the record of the hearing that sought to respond to questions that were raised at the first hearing several weeks ago.

In particular, the letter addresses the argument retailers are proffering that EMV is not effective because it is not being deployed with PIN security.  We told the Committee:

“The ‘PIN argument’ is a smokescreen used by retail trade groups to deflect attention from the high profile retail data breaches at big box stores over the past few years and their underlying causes. Rather than coming together to improve internal data security practices, the retail trades are fixating on a PIN technology that fights a small and declining share of today’s fraud and which would have been meaningless in breaches like those at Target and Home Depot. The reality is that if a merchant is EMV enabled and has their card readers turned on, they have the same protections whether PIN is used or not. Instead of fighting, we should embrace ideas like H.R. 2205, the Data Security Act of 2015, introduced by Representatives Neugebauer (R-TX) and Carney (D-DE), to apply meaningful and consistent data protection for consumers nationwide."

This hearing will very likely not be the last hearing on this matter.