Data portability in the Credit Card industry

Credit Card Data Portability BadgeOur Steering Group accepted PortabilityStandard.org as an official action group of the  DataPortability Project, with Bryan Johnson of Braintree Payment Solutions as chairperson.

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.

3 comments to Data portability in the Credit Card industry

  • [...] websites adopt the Portability Policy, we will evolve the standard questions. For example, our new credit card potability working group is raising awareness on an important issue—but it’s a business-to-business issue and not [...]

  • [...] websites adopt the Portability Policy, we will evolve the standard questions. For example, our new credit card potability working group is raising awareness on an important issue—but it’s a business-to-business issue and not [...]

  • [...] これは、ポータビリティの推進派と、企業と、ユーザとのあいだの対話の始まりだ。ポータビリティポリシーを備えたWebサイトが多くなれば、標準の質問も進化させることができる。たとえば、最近発足したクレジットカードポータビリティワーキンググループは、ある重要な問題への注意を喚起しつつあるが、それはB2B(business-to-business, 企業間)の問題であり、クレジットカードを扱わないサイトには関係がない。しかしそれでも、このワークグループに関連した質問を、コミュニティから寄せられるそのほかの質問とともに、いずれは標準質問集に含めたい(クレジットカードグループは単独の取り組みだったが、その後標準のポータビリティポリシーの傘下に入ることを決断し、われわれのより幅広い目標をサポートすることになった)。 [...]