The Credit Union National Association proposed the following changes to credit card processing in Texas to improve data security:
- Data Security at Merchant Level. Require merchants receiving payment by credit or debit cards to protect the sensitive personal financial information they receive;
- Require Consumers to Notify Card Processors of Breaches. Require card recipients to notify their card processor immediately upon detecting a breach, and require the information be provided to the issuing financial institutions by the card processors;
- Card Issues Should Cover Costs. Allow card issuers to recover costs and losses resulting from a business’s failure to protect or destroy the data; and
- Prohibit Merchants from Storing Card Data Beyond Transactions. Require anyone taking credit or debit cards to remove card data once the transaction is completed.
Credit Union National Association | Texas House committee hears CU’s data breach concerns