Electronic Transactions Association

The Electronic Transactions Association (ETA) is a prominent nonprofit advocacy and trade association in the payments industry. Established in 1990 initially as the Bankcard Services Association, it later expanded its scope to cover broader areas of electronic transactions, changing its name to the Electronic Transactions Association in 1996.

Mission and Objectives

ETA is dedicated to advocating for policies that foster innovation, competition, and financial inclusion within the payments and fintech sectors. It plays a crucial role in shaping public policy and regulatory frameworks at federal, state, and international levels. The association emphasizes consumer protection, advancing U.S. economic interests, and ensuring the secure development of financial services.

Membership and Reach

ETA comprises nearly 500 member companies across more than 30 countries, encompassing a diverse range of organizations including independent sales organizations (ISOs), payments networks, financial institutions, transaction processors, mobile payments providers, software developers, and hardware suppliers. This diverse membership allows ETA to represent the breadth of the payments industry effectively.

Advocacy Efforts

ETA's advocacy is focused on several key areas:

• Artificial Intelligence (AI): Supporting technology-agnostic standards that promote innovation while protecting consumers and enhancing national security interests.
• Digital Assets: Advocating for clear definitions and risk-based regulations to ensure responsible innovation and consumer protections.
• Open Banking: Promoting policies that empower consumers in data sharing and utilize private sector innovation.
• Privacy: Advocating for principles-based, harmonized laws that balance consumer privacy with industry needs for fraud prevention.
• Money Transmission Laws: Encouraging uniform regulatory standards across the U.S. to simplify operations for money transmitters.
• Financial Inclusion: Supporting solutions that provide safe and secure financial services to historically underserved communities.

Economic Impact

The payments industry, represented by ETA, facilitates over $52.7 trillion in global transactions annually. This industry plays a critical role in powering the U.S. economy by enabling efficient electronic transactions for businesses and consumers alike. Small and medium-sized businesses (SMBs) rely heavily on electronic transactions to remain competitive, contributing significantly to economic growth and job creation. Additionally, digital payments offer equitable financial opportunities and enhance consumer choice.

Security and Innovation

ETA member companies have invested significantly in securing electronic transactions, leveraging advanced technologies like encryption to combat fraud. The industry's commitment to security is evident in declining fraud rates over recent years. New technologies continue to enhance the efficiency and reliability of digital payments, supporting business growth and financial inclusion.

Political Action Committee (ETAPAC)

ETA also operates a Political Action Committee (ETAPAC) dedicated to supporting U.S. candidates who are aligned with the industry's interests. ETAPAC aims to ensure that ETA remains a leading voice in policy discussions affecting the payments industry, fostering a favorable environment for innovation and economic growth.