Jan 07, 2014 Dave King
The payment processing industry has remained in a perpetual flux for the past several years, especially as more regulatory entities continue to pass new legislation that governs relevant activities. Businesses that use ACH cards, wire transfers or other electronic payment processing capabilities would do well to keep up with the ebb and flow of new legislation.
Loeb and Loeb LLP recently explained how the Federal Trade Commission has become more active in its pursuit of creating enhanced legislation governing the payment processing industry. According to the firm, while there are many different goings on in this federal agency that relate to all different matters within the context of payment processing, most believe that all of the actions are meant to cut down on the prospect of telemarketing fraud.
Payment processors have access to some of the most sensitive personal data there is, and the ways in which the industry is regulated has allowed too much room for shoddy activities. The firm stated that rulemaking in the FTC has been somewhat slow, and that it has yet to be determined when or if the proposed legislation will make its way into reality.
Additionally, Loeb and Loeb LLP noted that electronic payment system fraud has also been a major priority for the Consumer Financial Protection Bureau, which is working with ACH card distributors and industry watchdogs to legitimize the sector further.
While legislation continues to be weighed by federal and state legislators, businesses should work to stay a step ahead of the curve by implementing advanced payment data protection solutions. A healthy combination of security software, network monitoring tools and employee awareness training can dramatically improve a company's resistance to breaches, fraud, information exposure, identity theft and other harmful threats.