Mobile Payments

Senate Committee Explores Framework for Mobile Payments Reply

E-Commerce News provided by BuckleySandler LLP for informational purposes only, and should not be construed as legal advice on any subject matter.

July 15, 2012

On July 10, the Senate Banking Committee held the second hearing in a two-part series on developing a framework for safe and efficient mobile payment systems. A panel comprised of economic and legal experts in the area of mobile payments updated the Committee on the state of the market and provided ideas for establishing an appropriate regulatory framework that balances innovation and consumer protection. Among other topics, the panelists and Senators discussed information collection and use and the related privacy and data security risks to consumers, as well as to merchants taking mobile payments. At the first hearing in the series, held in March, the Committee received testimony from regulatory experts from the Federal Reserve System. During that hearing the Committee sought information about the current roles of regulators with regard to mobile payments, and potential gaps in the regulatory structure. The House Financial Services Committee recently concluded a similar series in which it explored the regulatory structure for mobile payments and assessed the market impacts of mobile payment advances.

The Electronic Signature and Records Association Provides e-Sign Guidance to the Internal Revenue Service Reply

June 20, 2012

Leadership from the Electronic Signature and Records Association (ESRA), a Washington, D.C.-based trade association representing electronic signature industry adopters and providers, provided an information session to the Internal Revenue Service (IRS) on May 10 that included valuable e-signature information such as best industry practices, IRS Use Cases, Authentication, and Legal Framework among others.

The two-hour session gave IRS leaders not only a comprehensive 360-view on how to effectively implement e-signature projects but was also an eye-opener in exposing the different types of risks and methods that should be taken into consideration.  ESRA panelists provided guidance on the implementation of electronic records for government agencies such as the IRS by reviewing criteria needed to select a process and sharing several real world examples.

Through this session and others it plans to have in the future, ESRA continues to educate the public by addressing specific questions that still trouble many government and private organizations such as what the law requires in terms of authentication standards.  And the best way to educate is to engage people in the conversation given that the law is silent on this issue, as explained by Ken Moyle, Chairman of ESRA.  Thus, because a signer’s authenticity is determined based on the facts and circumstances, “it is good business practice to prevent fraud and take care of data by ensuring the taxpayer’s privacy and authenticating the identity of the signer,” stated Michael Laurie, a board member of ESRA.

IRS thanked ESRA’s nine panelists for the time taken to present an invaluable wealth of knowledge in a session that was an enriching experience for many IRS employees including senior leaders.

By Vitoriana Morais, ESRA Communications Director