ICBA - Industry Resources - Payments Resource Center - ICBA Responds to President’s Chip-and-PIN Executive Order

Credit & Debit Cards

Community banks provide debit and prepaid cards to their customers to execute the exchange of monetary value. Community banks strive to balance the mandate to maintain transparent, safe, sound and profitable payment card programs with the needs of financially varied customer bases.

Positions

Background

Congress and the federal agencies must exercise caution in ensuring that efforts to establish and maintain an environment protecting consumers from unfair, deceptive, or abusive acts or practices does not unnecessarily impede community banks’ ability to respond to changing markets and consumer needs. A well-informed consumer has the ability to shop with his or her feet, a free-market factor that benefits community banks that thrive on successful relationship banking.

National interest rates and fee caps would reduce competition as small issuers without scale may exit the business if they cannot compete with larger scale issuers on price alone. Efforts to place caps on rates and fees would also force small issuers to cut off credit to those most in need, and would likely raise the cost of credit to all other borrowers.

Congress and the federal agencies should remain mindful that community bank payment card programs need to be profitable. If this balance is not maintained, community banks will give greater consideration to discontinuing various products, particularly credit cards, which would result in further consolidation of the industry and fewer choices for consumers. Policies that generate more compliance costs for community banks will not benefit consumers.

Payment card system stakeholders – networks, merchants, card issuers and cardholders – are concerned about the growing security risks and the need to move to more sophisticated and secure technology such as chip and PIN. But re-engineering a payments system is not easy as there are many players that need to collaborate, from the card networks and processors to the bank issuers and merchants. ICBA will participate actively in this migration by conveying the community bank perspective to all stakeholders and communicating the implications of this migration to community banks and their customers.

Staff Contact: Viveca Ware



Date Title Source/Publication
10/20/2014 ICBA Responds to President’s Chip-and-PIN Executive Order NewsWatch Today
10/17/2014 ICBA Statement on White House Cybersecurity Initiative News Release
10/15/2014 Kmart Confirms Breach of Payment System NewsWatch Today
10/14/2014 Dairy Queen Malware Blizzard Hits 400 Stores NewsWatch Today
10/08/2014 Public Developing Data-Breach Fatigue NewsWatch Today
10/08/2014 Consumer Credit Increase Despite Credit Card Decline NewsWatch Today
10/06/2014 JP Morgan Data Breach Involved 76 Million Households NewsWatch Today
10/03/2014 Shellshock Fact Sheet on ICBA Data-Security Toolkit NewsWatch Today
10/02/2014 Supermarket Chains Suspect Data Breach NewsWatch Today
09/30/2014 Jimmy John’s Data Breach Spreads NewsWatch Today
09/19/2014 Home Depot Breach Compromises 56M Cards NewsWatch Today
09/16/2014 Access Fact Sheet and Toolkit on Home Depot Data Breach NewsWatch Today
09/15/2014 ICBA Issues Fact Sheet on Home Depot Data Breach NewsWatch Today
09/12/2014 ICBA: Home Depot Should Bear the Cost of Its Data Breach NewsWatch Today
09/12/2014 ICBA Backs Info Sharing to Combat Cyber-Threats NewsWatch Today
09/11/2014 ICBA Backs Info Sharing to Combat Cyber-Threats NewsWatch Today
09/10/2014 Survey: Millennials Avoiding Credit Cards NewsWatch Today
09/09/2014 Home Depot Confirms Data Breach NewsWatch Today
09/09/2014 Recent Retailer Security Breach at Home Depot Letter to Congress
09/05/2014 Home Depot Breach Reportedly Bigger Than Target NewsWatch Today
09/04/2014 Home Depot Reportedly Suffers Data Breach NewsWatch Today
09/04/2014 facebook facebook twitter facebook youtube facebook linkedin Reading on a mobile device? Check out the online version. Regulatory Relief ICBA Delivers Petition to Regulators Urging Call Report Re NewsWatch Today
08/22/2014 UPS Confirms Security Breach NewsWatch Today
08/19/2014 Visa Issues Best Practices and Recommendations for Fraudulent Credits Trend NewsWatch Today
08/19/2014 Major Grocery Chain Reports Data Breach NewsWatch Today
08/15/2014 MasterCard Revises Zero Liability Rule, Institutions Must Revise and Send Reg E Disclosures NewsWatch Today
08/14/2014 More Than 575M U.S. Payment Cards To Feature Chip Security in 2015 NewsWatch Today
08/13/2014 More Than 575 Million U.S. Payment Cards to Feature Chip Security in 2015 News Release
08/01/2014 CFPB Study: Small Debit Purchases Lead to Expensive Overdraft Charges NewsWatch Today
07/28/2014 ICBA Bancard Announces Launch of Visa Checkout to Clients NewsWatch Today
07/25/2014 Fed: Consumers Using Debit Cards More Than Credit NewsWatch Today
04/02/2014 Data Breach on the Rise: Protecting Personal Information from Harm Testimony
03/21/2014 Appeals Court Decides Against Merchant Effort to Increase Price Caps Windfall News Release
03/10/2014 Disclosing Credit Scores on Credit Card Statements Letter to Regulators
03/05/2014 Retailer Data Breach: The Community Bank Perspective Testimony
02/19/2014 Community Banks Reissue More Than 4 Million Payment Cards Following Retailer Data Breaches News Release
02/19/2014 ICBA Taking Meaningful Steps to Stronger Payments System CEO Alert
02/04/2014 The National Cybersecurity and Critical Infrastructure Protection Act (H.R. 3696 Letter to Congress
01/31/2014 ICBA Advocates Effective Data-Security Laws NewsWatch Today
01/15/2014 ICBA Posts Video with Tips on Dealing with Retail Security Breaches NewsWatch Today
01/15/2014 ICBA, Bancard Ask Visa, MasterCard for Audited Statement on Breach Response NewsWatch Today
12/20/2013 Fed: Credit, Debit Cards Account for Two-Thirds of Noncash Payments NewsWatch Today
10/03/2013 ICBA Issues Statement on CFPB CARD Act Report News Release
08/01/2013 Building a Small Business Card Portfolio Brick by Brick Bancard Confidential
03/12/2013 ICBA and CPI Card Group Extend Agreement, Providing Debit and Credit Card Manufacturing Services for Community Banks News Release
02/28/2013 ICBA: Survey Finds Community Banks Focused on Reducing Payments Fraud News Release
08/27/2012 ICBA Offers Tips to Help Students Handle credit Wisely News Release
08/27/2012 Follow-up on Outcomes of Debit Card Issuer Survey Industry Letter to Regulators
02/22/2010 Regulation Z Credit CARD Act Provisions Chart
02/01/2009 Summary of Final Credit Card and Overdraft Protection Rules ICBA
ICBA Bancard

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