Major Update in Payment Processing Legislation

[oldenstylehats]

Washington, DC - Hidden deep in Senator Christopher Dodd's 630-page Senate housing legislation is a sweeping provision that affects the privacy and operation of nearly all of America?s small businesses. The provision, which was added by the bill's managers without debate this week, would require the nation's payment systems to track, aggregate, and report information on nearly every electronic transaction to the federal government.

FreedomWorks Chairman Dick Armey commented: "This is a provision with astonishing reach, and it was slipped into the bill just this week. Not only does it affect nearly every credit card transaction in America, such as Visa, MasterCard, Discover, and American Express, but the bill specifically targets payment systems like eBay's PayPal, Amazon, and Google Checkout that are used by many small online businesses. The privacy implications for America's small businesses are breathtaking."

"Privacy groups like the Center for Democracy and Technology and small business organizations like the NFIB sharply criticized this idea when it first appeared earlier this year. What is the federal government's purpose with this kind of detailed data? How will this database be secured, and who will have access? Many small proprietors use their Social Security number as their tax ID. How will their privacy be protected? What compliance costs will this impose on businesses? Why is Sen. Chris Dodd putting this provision in a housing bailout bill? The bill also includes the creation of a new national fingerprint registry for mortgage brokers.

"At a time when concerns about both identity theft and government spying are paramount, Congress wants to create a new honey pot of private data that includes Social Security numbers. This bill reduces privacy across America's payment processing systems and treats every American small business or eBay power seller like a criminal on parole by requiring an unprecedented level of reporting to the federal government. This outrageous idea is another reason to delay the housing bailout legislation so that Senators and the public at large have time to examine its full implications."

From the Senate Bill Summary:

Payment Card and Third Party Network Information Reporting. The proposal requires information reporting on payment card and third party network transactions. Payment settlement entities, including merchant acquiring banks and third party settlement organizations, or third party payment facilitators acting on their behalf, will be required to report the annual gross amount of reportable transactions to the IRS and to the participating payee. Reportable transactions include any payment card transaction and any third party network transaction. Participating payees include persons who accept a payment card as payment and third party networks who accept payment from a third party settlement organization in settlement of transactions. A payment card means any card issued pursuant to an agreement or arrangement which provides for standards and mechanisms for settling the transactions. Use of an account number or other indicia associated with a payment card will be treated in the same manner as a payment card. A de minimis exception for transactions of $10,000 or less and 200 transactions or less applies to payments by third party settlement organizations. The proposal applies to returns for calendar years beginning after December 31, 2010. Back-up withholding provisions apply to amounts paid after December 31, 2011. This proposal is estimated to raise $9.802 billion over ten years.

http://www.freedomworks.org/newsroom/press_template.php?press_id=2571

 

[blackkat]

Now that is some scary shit! Of course when you consider how inept our government is maybe it's not.

 

[jahpo]

Wow, thats just great. I wonder what the long term effects will/would actually be on internet transactions, alot more tax revenue for Uncle Sam I'm sure but beyond that I wonder what they could/would use that type of info for.

 

[typo619]

What is the federal government's purpose with this kind of detailed data? How will this database be secured, and who will have access? Many small proprietors use their Social Security number as their tax ID. How will their privacy be protected?

My thoughts exactly, why and what is their purpose on creating a bill?

 

[Whisker]

My thoughts exactly, why and what is their purpose on creating a bill?

Therein lies the question...

 

[nicksor]

duh, it's to stop terrorists!

 

[Smitty]

Just another way for the gov't to legally steal more of our money.

Our gov't is scary corrupt.

 

[deth_by_uv]

Damn, so how do we stop this...

This is absolutely crazy. What the hell is wrong with these people, are they retarded?

I just came from over to this thread after reading and posting in a gun thread. I better get off the forum before I get upset even more, lol.

 

[Smitty]

Damn, so how do we stop this...

This is absolutely crazy. What the hell is wrong with these people, are they retarded?

I just came from over to this thread after reading and posting in a gun thread. I better get off the forum before I get upset even more, lol.

You don't stop it, err you can't I mean.

They aren't retarded, they know exactly what they are doing.

 

[metalan1]

No they are not retarded, they are criminals. Anything to control on a mass scale, thats all they want to do.

 

[Uptownbulker]

Dodd = Democrat

Democrat = Socialist

Socialism = Tyranny


A Very Old But Applicable Document:

"When in the Course of human events, it becomes necessary for one people to dissolve the political bands which have connected them with another, and to assume among the powers of the earth, the separate and equal station to which the Laws of Nature and of Nature's God entitle them, a decent respect to the opinions of mankind requires that they should declare the causes which impel them to the separation.

We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain inalienable Rights, that among these are Life, Liberty and the pursuit of Happiness. -- That to secure these rights, Governments are instituted among Men, deriving their just powers from the consent of the governed, -- That whenever any Form of Government becomes destructive of these ends, it is the Right of the People to alter or to abolish it, and to institute new Government, laying its foundation on such principles and organizing its powers in such form, as to them shall seem most likely to effect their Safety and Happiness. Prudence, indeed, will dictate that Governments long established should not be changed for light and transient causes; and accordingly all experience hath shewn, that mankind are more disposed to suffer, while evils are sufferable, than to right themselves by abolishing the forms to which they are accustomed. But when a long train of abuses and usurpations, pursuing invariably the same Object evinces a design to reduce them under absolute Despotism, it is their right, it is their duty, to throw off such Government, and to provide new Guards for their future security. -- Such has been the patient sufferance of these Colonies; and such is now the necessity which constrains them to alter their former Systems of Government. The history of the present King of Great Britain is a history of repeated injuries and usurpations, all having in direct object the establishment of an absolute Tyranny over these States. To prove this, let Facts be submitted to a candid world."

Substitute "United States Government" for "King Of England" and by George, I think you've got it!

 

[blackkat]

That old document should be required reading for every politician in this country.

 

[evertd]

It's just another step in "big brother is watching", absolute control and eventual one world government controlling everything that goes on.

 

[Daniel-MD]

I dont fu* care.. I do and WILL use offshore e-currencies and payments processors outside US

 

[Smitty]

That old document should be required reading for every politician in this country.

Lol yah that'll be the day.

I'm starting to think Ron Paul is the only politician
to actually know what document you are actually
talking about.

 

[blackkat]

Hell, Rupaul probably knows more about this document than any politician.

 

[lazarus4444]

You mean they don't already do this???? I thought they did, maybe i assumed too much *shrug*