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Education

Again, the existing acquiring processors and economic A second consideration is privacy. It sounds old fashioned
assumptions do not need to be revised to function in to talk about privacy when we have so little of it left –
the service of automated merchants. Today's vending but I believe legislators will step up to provide some
machines already do this when you purchase a pair of rudimentary privacy laws, such as the new California
headphones at the airport by presenting your credit card Consumer Privacy Act.
to the machine. Where the payor is automated, we simply
replace the human cardholder with a machine. Finally, automated transactions in the physical world
are a slightly new area that is yet to be built. Contracts
What are the main legal considerations of payments in an of purchase and sale initiated and executed by machines
automated world? require drafting and understanding legal terms that are
more complicated than the current purchase and sale
There are three primary considerations for payments in terms. These terms will challenge lawyers – or their AI
an automated world. First is consent. Consumer consent is substitutes.
hard enough to prove now (as discussed above) and will
be even harder to prove in cases where consent becomes It is worthwhile for ISOs to learn about new automated
a consent not for a single payment but for a complicated machines to seize the tremendous opportunities that they
set of rules involving your home, grocery store, car, pets, present for payments we have not yet imagined.
family members etc.

The rules will be so complicated that typical consumers In publishing The Green Sheet, neither the author nor the publisher is
might not want to be bothered to understand them all engaged in rendering legal, accounting or other professional services. If
– and there might be underwriters who will enter the legal advice or other expert assistance is required, the services of a com-
market to insure the risk of faulty automated purchases. petent professional should be sought. For further information on this
In today's world, a three year-old-child plays with an article, please contact Adam Atlas, Attorney at Law by email at atlas@
iPad and spends $1,000 on game tokens. In the automated adamatlas.com or by phone at 514-842-0886.
scenario, your refrigerator orders a truckload of milk by
accident.