November 2014
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Obama Issues Credit Card Industry Bailout by Executive Order
The Hampton Roads Messenger 3
Governor McAuliffe Announces $300,000 Local Innovation Grant
Funding to assist regional collaborative effort with small business development programs
RICHMOND - Governor Terry
McAuliffe announced $300,000 in Community Development Block Grant (CDBG) Local Innovation funding through Mecklenburg County for the Virginia's Growth Alliance, which is a regional collaboration made up of 10 counties and one city in the Southern Virginia region. The grant will be used to develop several new programs for youth, new businesses and established businesses throughout the region to spur small business development and create jobs.
"Helping the Commonwealth's
BAIL OUT: President Obama signs an Executive Order on “Improving the Security of Consumer Financial Transactions,” to mandate chip-and-pin credit cards for government vendors.
BY YAËL OSSOWSKI
The credit card industry got a huge boost from President Obama last month when he signed an executive order requiring
a
It dictates Treasury
switch the “take
to guarantee authorized “enhanced
to chip-and-pin
technology for government vendors and agencies.
payment
Department of the necessary steps” terminals
by the agency have security features” by
January 2015. It would require a complete upgrade of all credit card machines approved by the Department of
Treasury, a cost borne by government agencies instead of credit card firms.
Visa and Mastercard have pledged to fully adopt chip-and-pin technology by October 2015.
Precipitated by high-profile data breaches at credit card terminals at retailer Target in January of this year, the president’s order is akin to a credit card industry bailout, known as the “BuySecure initiative.”
Obama signed the executive order Oct. 17 at the office of the Consumer Financial Protection Bureau.
“I want to thank all the business
leaders who are choosing to protect their companies and their customers from the kind of hacking that we saw too many times this past year,” said Obama at the signing ceremony. “I want to encourage every retailer, every bank, and every credit card company to join them in this effort.”
The new policy would “upgrade retail payment card terminals at Federal agency facilities to accept chip and PIN-enabled cards,” according to the White House’s fact sheet.
The estimated cost for updating all credit card terminals and machines is at least $8 billion, according to Javelin Strategy
and Research. Obama is
guaranteeing a huge amount of income for credit card companies, an effective bailout.
“This debate has been going on for quite some time in our industry, and
we’re very happy that financial cards would be moving away solely from moving from magnetic strips,” said Al Vrancart, founder of the International Card Manufacturers Association, the world’s largest lobby for the credit card industry.
He told
Watchdog.org the requirement from President Obama’s executive order will go a long way to aid the
credit
technology. “Anything
card that industry comes adopt this out of
Washington as a mandate will certainly help, but they got their wake-up call with the data breaches at Target and Home Depot,” he said. “I think it’s supportive to the overall chip cards being used in other market segments other than financial. There are vertical markets, including government-issued cards, and benefits cards that will now use this technology.
“The General Services Administration has to start building this into their contracts and requests for bids starting in January,” he told
Watchdog.org. “So the question is, is the infrastructure going to be ready to handle these types of cards? Hopefully so.”
Vrancart points out that as chip-and-pin cards will be industry standard by October 2015, a boost from the Obama administration
helps subsidize Since the announcement the
early push to convert point of sale terminals across the country.
of the
executive order, credit card firms have been in unanimous support.
“The Smart Card Alliance commends the federal
government’s plans to
apply EMV chip technology to newly issued and existing government credit and debit cards, as well as agencies’ payment
terminals,” said Randy
Vanderhoof, executive director of the Smart Card Alliance, in a statement.
“The government commitment
is validating the from the payments
ecosystem, including payment brands, issuers and merchants, to move to chip technology. This initiative will help raise awareness to the security benefits chip cards provide and may accelerate the U.S. move to the technology.”
You are cordially invited to attend...
City Council meetings... Norfolk - regular meetings are held on the first and fourth Tuesday at 7:00 p.m. and the second and third Tuesday at 2:30 p.m.
Chesapeake - regular meetings are held on the second, third and fourth Tuesday of each month at 6:30 p.m.
Newport News - regular business meetings are held on the second and fourth Tuesdays of each month at 7:00 p.m.
Suffolk - regular meetings are held on the first and third Wednesday of each month at 7:00 p.m.
Hampton - typically take place on the second and fourth Wednesday of every month at 7:30 p.m.
Virginia Beach - meets on the first four Tuesdays of each month. In July the meetings are scheduled on the first two Tuesdays only. Formal session begins at 6 p.m.
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Portsmouth - meeting dates are the second and fourth Tuesday of each month at 7:00 p.m.
existing and future business owners find ways to succeed is an important piece
of building a new Virginia
economy," said Governor McAuliffe. "Programs like the Community Development Block Grant invest in the success of our communities and encourage business growth throughout Southern Virginia."
different and
This project will offer several educational,
monetary programs
mentoring including
a pilot youth educational program involving both online and classroom education, a six-week "digital high touch" course for new entrepreneurs, a startup principles program for existing businesses, a microenterprise lending program funding business start-up or expansion, and a Peer2Peer XChange mentoring program to help develop network for new business owners.
The Virginia Growth Alliance is comprised of Mecklenburg County, Amelia County, Brunswick County, Buckingham
County, Charlotte
County, Cumberland County, Greensville County, Lunenburg County, Nottoway County, Prince Edward County and the City of Emporia.
"Entrepreneurial development is an indispensable economic
component
development," said Secretary of Commerce and Trade Maurice Jones. "We look forward to seeing the creativity and release of the entrepre- neurial spirit throughout this region, and we hope this is a launch pad for these communities and businesses."
Since 1982, the federally-funded
CDBG program has been administered by the Virginia Department of Housing and Community
Development
(DHCD), and Virginia receives up to $17 million annually for this program. The CDBG program is a flexible tool for community improvement in Virginia and can address a wide range of needs, from infrastructure for new or expanding industries, new or improved water and sewer systems in rural areas, rehabilitation of housing in declining neighborhoods,
revitalization of
commercial districts, support to small businesses and support of facilities for a variety of needed critical community services. Only eligible units of local government may apply for funding.
of growth and community
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