"More than six months after the touted October 1st liability shift, where retailers began assuming financial responsibility for debit and credit card fraud, the debate on credit card security persists in the halls of Congress, government agencies, and in the opinion pages.

Before the liability shift deadline, credit card companies began issuing new chip-enabled credit cards (also known as EMV cards) to their customers, while retailers were responsible for upgrading their point-of-sale terminals to accept the new cards. Since then, the debate between retailers and card issuers has grown more intense. Retailers argue that credit card companies set unrealistic deadlines and provided a poor roadmap for retailers to become EMV compliant, but card issuers argue that some retailers waited too long to upgrade terminals.

While who bears the liability of fraud is of little concern for most consumers, as long as they are not liable, the crux of this ongoing battle should be a major concern for all Americans. There is a profound difference between the cards being issued in the U.S., compared with those used in the U.K., Canada, Australia, and Europe. These EMV cards have a two-prong security system: a microchip is embedded in the card to address counterfeit fraud and each card is outfitted with a unique PIN to authenticate the transaction in order to combat common forms of fraud.

While financial institutions have taken a step in the right direction by replacing the fraud-prone magnetic stripe cards we are accustomed to with chip-equipped cards, they're still relying on signatures - not PINs - as a secondary method to ensure transactions are legitimate. They incorrectly believe that requiring a PIN for credit card transactions could burden consumers who may have difficulty remembering another passcode - a baseless argument that does not give Americans enough credit. Consumers are perfectly capable of remembering a PIN, particularly if it is the best protection available for their finances.

For some time, I have advocated for the implementation of chip and PIN here in the U.S. The microchip coupled with the individual PIN make tampering and counterfeiting the cards, along with using stolen financial data, nearly impossible. Should a thief attempt to use a stolen chip and PIN card for an in-store purchase, it would be useless without knowledge of the PIN. Furthermore, we could extend these protections even further if we had more robust mechanisms available for consumers to securely use their PINs during online transactions. The technology is out there, it is just not widely used.  

Chip and PIN not only helps reduce fraud, but it also reduces the incentives to perpetrate data breaches in the first place. It diminishes the value of the data that could be stolen, because the chip and PIN cards' two-pronged security measures make it more difficult, if not possible, for thieves to actually use or sell stolen consumer credit card data."

Say "hi" or "look at me" to Minnesota's retail leaders by donating an item to MnRA's silent auction or golfer goodie bag for our June 28 Legislative Wrap Up Golf Tournament.  Donating is easy and appreciated.  Follow one of the links below to fill out our quick web form and we'll do the rest!

Tournament links:

• Register or learn more
• Donate an item to the silent or live auction, or raffle
• Learn about sponsorship options

"Consumers say they will spend more than ever on Father's Day this year as they shower dads with everything from power tools to trips to the ballpark, according to the National Retail Federation's annual survey conducted by Prosper Insight and Analytics.

Consumers are expected to spend an average $125.92 for the holiday, up from last year's $115.57. Total spending is expected to reach $14.3 billion, the highest in the survey's 13-year history but still below this year's Mother's Day total of $21.4 billion.

"It's encouraging to see consumers planning to splurge on dads," NRF President and CEO Matthew Shay said. "This increase in spending could be a good sign related to consumers' willingness to spend more as we head into the second half of the year."

According to the survey, consumers plan to spend $3.1 billion on special outings such as dinner, brunch or other types of a "fun activity/experience" (given by 47 percent). Clothing (given by 43 percent) and gift cards (given by 41 percent) are tied at a hair under $2 billion each while consumer electronics (given by 20 percent) follow at $1.7 billion. As with Mother's Day, greeting cards are the most commonly purchased gift at 65 percent but account for only $833 million of projected spending. Other popular gifts include personal care, automotive accessories, books, music, home improvement/gardening supplies and sporting goods."

"RILA fears that banks will begin imposing excessive fees on merchants if House Republicans are successful in repealing the Durbin Amendment.

Recent comments from Jeb Hensarling, House Financial Services chairman, regarding the Durbin Amendment, have evoked a strong reaction from the Retail Industry Leaders Association (RILA).  The comments from Hensarling revealed that House Republicans have plans to repeal the Durbin Amendment in an effort to replace Dodd-Frank.

Austen Jensen, RILA's vice president for government affairs, said repealing Durbin would once again allow banks and card networks to impose outrageous fees on merchants across the country, while hurting everyone outside Wall Street.

"If the first step of House regulatory reform consists of giving banks the green light to overcharge merchants and consumers again-mark retailers down opposed and ready for battle."

The bipartisan Durbin Amendment, which passed the Senate in 2010 with 64 votes, requires that the fees that banks and card networks charge every time a debit card is swiped are "reasonable and proportionate to the cost of processing the transaction. Swipe fees are estimated to cost merchants and consumers $40 billion every year.

"Smart regulation must recognize the difference between Main Street and Wall Street and ensure that consumers and our economy are protected from excessive and risky speculation," said Jensen. "Retailers support common-sense regulatory reform, but starting with a repeal of the Durbin Amendment makes this package a nonstarter for the retail community."

"Retailers support revisiting laws and regulations implemented in the wake of unprecedented carnage in the financial sector in 2008, as long as changes do not fleece consumers or leave taxpayers exposed in the event of another financial crisis.""

In late May the Minnesota Retailers Association traveled with a delegation to Washington, D.C. for the annual National Retail Federation (NRF) Retail Advocates Summit.  In addition to spending Monday through Wednesday discussing issues and meeting federal officials, Minnesota small business owners Hillary Feder and Michael Norby were named to NRF's America's Retail Champions list. Feder is owner and operator of Hillary's in Hopkins. Norby is co-owner of Norby's Department Store in Detroit Lakes.

Norby and Feder were two of only 41 retailers across the country recognized for work in engaging elected officials on issues important to consumers, retailers, employees, and communities.

Feder was further honored as a finalist for the top designation of America's Retail Champion, taking the stage for special recognition as a leading advocate for retail.

"Through the America's Retail Champions program, the National Retail Federation is proud to host hardworking small business owners in Washington, D.C. to recognize our industry's most engaged retail advocates," NRF President and CEO Matthew Shay said. "These men and women truly personify the American Dream, and it is important that Washington lawmakers hear first-hand from retail job and opportunity creators in towns large and small across the country."

"We are so proud to have Hillary and Michael named to the 2016 America's Retail Champions list," said Bruce Nustad, president of the Minnesota Retailers Association. "The fact that Minnesota had two retailers recognized among such a great list of businesses across the country shows our commitment to adding retail's voice in decisions impacting the economic environment of our neighborhoods. Congratulations to Hillary for her special honor of being a finalist and Michael on being named, and thank you to both for helping elected officials hear the story of retail."