Servicemember Payment Data Privacy and Security Act

DoD ban on certain payment vendors

This bill would bar the Secretary of Defense from signing new DoD contracts for payment processing with any retailer that uses "covered" payment equipment as a substantial or essential part of the contract, starting January 1, 2027. It would require the Secretary to finish a review within 180 days after enactment and, within 90 days after that review, issue guidance to prohibit such use and to modify or end affected contracts unless retailers stop using the covered systems. The bill would also require a written report to the House and Senate Armed Services Committees within one year of enactment. It would define "country of concern" to include China, Russia, Iran, and North Korea and would define "covered equipment" to include payment processors, source code, secure processors, or firmware developed, owned, controlled, or operated by entities tied to those countries (including affiliates and successors).