Tech Meets Law: Securing Online Payments
The confluence of online payment security and U.S. law has never been more pronounced than in today’s digital age. The trend of ever-increasing e-commerce and digital transactions over the last decade has made it all the more important that the U.S. has a comprehensive legal framework that protects the businesses and consumers that engage in online transactions. This article explores some of the latest trends and technologies in online payment security through the lens of legal developments and highlights how these advancements are shaped by American legal principles.
The Evolution of Online Payment Security and American Law
American law has shaped the evolution of online payment security, and the consequences of a trio of 20th-century laws are still felt in transactions that take place over the World Wide Web even today. While the Fair Credit Billing Act (FCBA) of 1974 and the Electronic Fund Transfer Act (EFTA) of 1978 (which both responded to the greater prevalence of electronic and credit transactions at the time, rather than internet transactions specifically and listed consumer protections regarding such transactions) aren’t part of the everyday conversation in the tech industry, the legal foundations they established have had enormous effects on the technologies we take for granted today.
Those early laws set a precedent for providing consumers with protections when making transactions in the financial space — a concept that only became more critical as transactions moved to the internet. Even as the internet began to catalyze a whole host of new commercial activities, these laws were updated and expanded to include the shifts in technology — the Gramm-Leach-Bliley Act of 1999, for instance, responded to the explosion of new types of financial institutions and the need for them to explain to customers their data sharing practices and how they safeguard information.
That piece of legislation, among others, has been instrumental in shaping the robust, reliable online payment ecosystems that we depend on today; it provides a still-relevant example of how laws have evolved over the years to keep up with technological advancements, all the while delivering to American consumers the kind of protections that they deserve in that brave new digital world.
iGaming and Payment Security
The iGaming sector has prioritized secure online payments, with Platforms like PokerStars using robust security frameworks to manage the high volume of daily financial transactions. When players sit down to play a game of poker, their attention is on the strategies needed to win, like mastering the art of bluffing, interpreting their opponent’s behaviour, and learning hand rankings. They rarely think about what’s happening behind the scenes to keep them safe online. For example, iGaming platforms employ end-to-end encryption, multi-factor authentication, and sophisticated algorithms to keep gamers safe while they play. That way, players can focus on having a good time.
From a legal standpoint, the iGaming industry faces stringent regulatory requirements designed to protect both the integrity of the games and the financial transactions that underpin them. In the United States, state-level legislation often dictates the security measures that must be in place, reflecting a commitment to safeguarding consumer rights and preventing fraud. These laws ensure online platforms provide a secure environment for players and comply with various regulations that govern online gambling, including the verification of player identities.
Legal Implications of Advanced Payment Security Technologies
The use of tech-forward solutions, like artificial intelligence, machine learning, biometric authentication, and blockchain, provides for several legal considerations in the online payment security industry. Biometric data, for instance, is used to thwart fraud but requires observing privacy laws and regulations by businesses, which have to navigate these rules — which deal with data collection, storage, and consent, and make sure they are ticking all the right checkboxes. And, while smart contracts are legally recognized, the technology behind decentralized digital ledgers creates new questions for regulators. Indeed, the technologies offer not just a march forward in security but the occasion for taking a measured and considered approach through the law to ensure compliance and that customers’ rights are covered.
