Newsroom

Some retailers' decision to block the use of Apple Pay and similar payment systems, which offer better protection of consumers' financial and personal information, is just another example of merchants putting profits first, NAFCU Vice President of Political Affairs Katie Marisic said Wednesday.

Walmart, CVS and Rite Aid are reportedly blocking the use of Apple Pay in favor of another system still in development, and recently hacked in testing.

That new system, CurrentC, will reportedly allow merchants to avoid the fees they pay now to accept payments through credit and debit card accounts and to collect more information on the customers who shop there. Meanwhile, 1 million consumers are said to have already made their commitment to Apple Pay.

"The payments system is continuing to evolve, and CurrentC may be a part of that evolution," said Marisic. "However, telling consumers they won't be able to use a payment system they prefer and trust seems counterintuitive in an era of heightened security concerns, particularly as the holiday shopping season approaches."

Indeed, retailers are reportedly already on edge as they prepare for their annual "holiday freeze," according to Information Week's Dark Reading.

A "holiday freeze," the article states, is where retailers halt the launch of any new security or information technology tools so they can avoid interruptions in processing and sales. The article quotes sources noting that data hacks are rare during the holiday shopping season because of the so-called condition of "high alert" at retail establishments, but that's just when last year's Target breach occurred.

NAFCU is continuing to press for action on national data security and breach notification standards for retailers, similar to those required of financial institutions, and to ensure all market participants bear their share of responsibility for breaches.

The association is also participating in discussions, at several levels, focused on how to make the payments space more efficient and safe for consumers. It's also encouraging Congress to also data security in broader measures addressing cyber threats.