In the words of the new group:
The Credit Card Data Portability Standard is supported by an opt-in community of electronic payment processing providers (service providers) that agree to provide credit card data and associated transaction information (sensitive data) to an existing merchant upon request in a PCI Compliant manner.
Why are we supporting it
There is a perception that the DataPortability Project is addressing only social networking issues, but we try to focus our efforts in other verticals like medical and now financial. To give an example of why this is important:
- Let’s say you have an account with Netflix. You’ve provided your credit card to purchase movies through Netflix.
- Netflix uses a payment provider like PayPal, who does the actual credit card processing.
- One day Netflix decides it doesn’t like PayPal’s policies and new fees. They start shopping for a new payment provider
- Because credit card data portability is not in effect, Netflix has to re-ask its consumers for their credit cards. This is because PayPal – not Netflix – is the company that stores and controls your credit card data.
It’s crazy because Netflix is the company a consumer creates the relationship with, and yet PayPal controls this important information about them.
This is why we welcome the credit card working group. This is an issue hidden from consumers, and will only affect how B2B operates – but in the long run, it’s making the market more efficient as we march towards a world of true data portability.
We look forward to working with the group to develop the approach and increase exposure of this important issue.