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(Sep2007)ETA Advocates for Members on Capitol Hill |
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As Congress returns to business following the August recess, the Electronic Transactions Association (ETA) is prepared to represent the legislative and regulatory interests of our members.
IRS Merchant Acquirer Reporting Proposal
ETA has met with Congressional staff, the Internal Revenue Service (IRS), the General Accountability Office (GAO) and others to raise concerns over a new tax reporting requirement proposed by the Bush Administration. The proposal would require reporting of all merchant credit/debit card transactions in an effort to reduce underreporting by businesses. In addition to these discussions, ETA has provided government officials with ETAU course materials and information gathered through a grassroots member survey.
ETA opposes this proposal believing the requirement would provide potentially misleading information to the IRS; create a costly new reporting process that would increase consumer prices; and drive small businesses away from accepting payment cards. ETA recently participated in the development of a whitepaper on the subject through a coalition led by the American Bankers Association (ABA) and joined the Coalition for Fairness in Tax Compliance, a group backed by the US Chamber of Commerce and National Federation of Independent Businesses, to address these potentially burdensome requirements. ETA continues to work with other businesses and trade associations who oppose this proposal.
Data Security/Breach Notification
ETA has supported Congressional efforts to establish a national standard for safeguarding sensitive consumer data and alerting individuals affected by security breaches. ETA remains adamant that any legislation must provide a uniform preemptive national standard for notification to individuals whose information has been subject to a security breach; require notification only when the security and confidentiality of personal information is truly at risk; and provide "safe-harbor" for personal information that is protected by encryption or some other means, making the information unusable.
In addition, ETA continues to monitor action on legislation requiring the licensing of Internet gambling facilities by the Financial Crimes Enforcement Network. At the state level, ETA is tracking the impact of a precedent-setting law passed in Minnesota that establishes an explicit liability for merchants who do not take measures to protect payment card data and an Arkansas law that establishes strict limits on merchant processing contracts. ETA will keep members informed as new information on these important issues arises.
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Tel: 202.828.2635
