PRINCETON JUNCTION, N.J. — The Smart Card Alliance, an association of companies working in the smart card industry, has praised the Federal Reserve for a regulatory change which the Alliance said will help advance smart cards.
The rule change amends Regulation E to eliminate the need for receipts for electronic transactions of $15 and below.
“Contactless payment adoption at quick service retail stores in the United States took off in part as a result of the payments industry rule changes that waived the requirement of signatures for credit card transactions under $25,” said Randy Vanderhoof, executive director of the Smart Card Alliance. “The Federal Reserve Board ruling will be the start of another wave of locations where consumers can choose payment options other than cash or prepaid tokens or tickets at unmanned machines that demand low-cost, speedy transactions for operators.”
Quick-service restaurants, convenience stores and event concessionaires along with vending, parking and transit operators will all benefit from the Fed's action on Regulation E, according to Vanderhoof. And the opportunity is significant: parking, vending and coin-operated machines alone represent $37 billion in annual spending, according to a report from the Federal Reserve Bank of Philadelphia, he added.
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