Servicemember Payment Data Privacy and Security Act

This bill requires the Department of Defense to review and eventually ban contracts with retailers that use payment processing systems from specific countries deemed a national security risk, such as China, Russia, Iran, and North Korea. Effective January 1, 2027, the Defense Department will be prohibited from entering into agreements for payment equipment or services if those tools rely on technology developed, owned, or controlled by entities in these nations. The law defines covered systems broadly to include hardware, software, and firmware linked to these countries, aiming to prevent potential foreign access to sensitive military financial data. Retailers wishing to continue working with the Department of Defense must replace their payment processing infrastructure with systems that do not involve these restricted technologies.