ICBA - Industry Resources - Payments Resource Center - ICBA Calls for Data-Breach Costs to Be Borne by Breached Parties

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.



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
01/26/2015 ICBA Calls for Data-Breach Costs to Be Borne by Breached Parties NewsWatch Today
01/23/2015 Industry Letter on Data Security Industry Letter to Congress
01/23/2015 What are the Elements of Sound Data Breach Legislation? Industry Written Statement
01/13/2015 White House Proposes 30-Day Breach Notification Requirement NewsWatch Today
01/09/2015 ICBA Corrects Record on Data Security in Response to Merchants NewsWatch Today
01/05/2015 Chick-fil-A, Parking Company Investigate Breaches NewsWatch Today
12/23/2014 ICBA’s Home Depot Survey Makes Local and National Headlines NewsWatch Today
12/22/2014 ICBA Backs OCC Push for Leveling Data-Breach Playing Field NewsWatch Today
12/19/2014 Community Banks Reissue 7.5M Cards After Home Depot Breach NewsWatch Today
12/19/2014 Supporting Efforts to Even the Playing Field Between Banks and Merchants When a Merchant Breach Occurs Letter to Regulators
12/18/2014 Community Banks Reissue Nearly 7.5 Million Payment Cards Following Home Depot Data Breach News Release
12/17/2014 ICBA, Task Force Issue Payments Security Road Map NewsWatch Today
12/16/2014 Op-Ed: Expand Retailer Data-Security Standards NewsWatch Today
12/10/2014 Cybersecurity: The Community Bank Perspective Testimony
12/05/2014 Financial-Retail Cybersecurity Partnership Plans Next Steps NewsWatch Today
12/05/2014 Bank Lawsuit Over Target Breach Allowed to Proceed NewsWatch Today
12/04/2014 Merchant Financial Cyber Partnership Announces Next Steps for Securing the Payments System Joint News Release
12/03/2014 ICBA Seeking Feedback on Home Depot Breach NewsWatch Today
12/02/2014 “60 Minutes” Gets Community Bank Perspective on Data Breaches NewsWatch Today
11/24/2014 CFPB’s Cordray Discusses Concerns with Electronic Payments NewsWatch Today
11/24/2014 Research: Retailer Security Performance Continues Decline NewsWatch Today
11/21/2014 ICBA’s Cam Fine Fires Back, Says Retailers Need to Be Held to Same Standards on Cybersecurity News Release
11/21/2014 Fine: Retailers Need to Be Held to Same Standards on Cybersecurity NewsWatch Today
11/19/2014 Lawmakers Seek Data-Security Meetings with FIs, Retailers NewsWatch Today
11/17/2014 Square Taking Orders for EMV Reader NewsWatch Today
11/13/2014 ICBA Backs Stronger Security Standards for Retailers NewsWatch Today
11/12/2014 Industry Letter on Recent Breaches of Consumer Information Industry Letter to Congress
11/12/2014 USPS Loses Employee and Customer Data in Cyberattack NewsWatch Today
11/12/2014 Fine: It’s Common Sense for Party at Fault to Foot Data Breach Bill NewsWatch Today
11/10/2014 Home Depot Breach Update: 53 Million Emails Also Stolen NewsWatch Today
10/17/2014 ICBA Statement on White House Cybersecurity Initiative News Release
09/09/2014 Recent Retailer Security Breach at Home Depot Letter to Congress
08/13/2014 More Than 575 Million U.S. Payment Cards to Feature Chip Security in 2015 News Release
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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