“…more incentives (should be) put in place to encourage more secure methods of payment authorization. One example of this is the “chip and PIN” system in use outside of the United States. In this system, credit cards use a tiny PIN-activated microchip that protects payment information...”
Data security also is going to be a major focus at this year’s Hospitality Law Conference.
Right now, liability is on the merchants’ side of things but not on the payment systems, and that has to change, said Cannon, who is counsel to the Merchants Payment Coalition.
“Right now, all liability runs downhill and at the bottom is the merchants’ coalition and, partially, the hospitality industry,” he said.
The federal government is reviewing the issue of data security liability and could potentially come up with a new way of assigning liability by 21 July of this year.
“In terms of the regulatory process, this is the speed of light,” Cannon said.