WASHINGTON (6/22/15)--While CUNA continues urging Congress to protect consumers from data breaches at retailers by passing the Data Security Act (S.961/H.R.2205), others are making their voices heard supporting CUNA-backed data security standards bills for merchants.
CUNA welcomes third-party endorsement of S. 961/H.R. 2205. Last week CUNA President/CEO Jim Nussle and other financial associations blogged in The Hill to urge Congress to pass the bill.
A Thursday column by Steve Pociask, president of the American Consumer Institute, a nonprofit educational and research organization, in RealClearPolicy.com blog urged passage of the CUNA-backed bill.
“While banks and credit unions are responsible for paying the costs for reissuing new credit cards when a breach occurs, and while they must give notification of breaches to merchant clients, they are not allowed to identify who was responsible for the breach,” and they are “effectively taking the blame and incurring the cost for the lost data,” he wrote.
“Merchants’ payments of credit-card fees do not entitle them to avoid the costs caused by their inaction. In fact, the argument that these costs should not be borne by small businesses does not hold water, when you consider that 93% of credit unions are classified as small businesses as well, yet they manage to maintain safeguards similar to those proposed by Congress,” said Pociask.