Servicemember Payment Data Privacy and Security Act

This bill aims to enhance national security by prohibiting the Department of Defense (DoD) from contracting with retailers that utilize certain payment processing equipment, systems, or services. Specifically, it targets technology where core components are developed, manufactured, or controlled by entities from designated countries of concern , including China, Russia, Iran, and North Korea, or any other country deemed a significant national security risk by the Secretary of Defense. This prohibition on new contracts takes effect on January 1, 2027 , ensuring that sensitive financial transactions are not processed through potentially compromised systems. To implement this, the Secretary of Defense is mandated to conduct a comprehensive review of all retailers within 180 days of enactment to identify those using covered equipment, systems, or services . Following this review, the Secretary must issue guidance within 90 days, directing the modification or termination of existing contracts unless retailers cease using such equipment in a timely manner. A report on the implementation of these requirements must be submitted to the House and Senate Armed Services Committees within one year, ensuring congressional oversight of these critical security measures.