CONGRESSMAN
WASHINGTON — Rep. Ben Cline, R-Va., introduced legislation last Wednesday that would prohibit the Defense Department from using point-of-sale technology owned or operated by companies linked to foreign adversaries, including China, Russia, Iran and North Korea.
The Servicemember Payment Data Privacy and Security Act would bar the Pentagon from contracting with retailers that use covered payment processing equipment connected to a “country of concern,” effective Jan. 1, 2027.
“I introduced the Servicemember Payment Data Privacy and Security Act to protect important information from CCP operatives who aim to exploit, undermine, and harm our Nation,” said Cline, who serves on the House Intelligence Committee.
The bill comes after a series of findings about Chinese-manufactured payment devices. The Treasury Department determined in 2021 that point-of-sale devices made by PAX Technologies, a China-based manufacturer, were transmitting encrypted data to unknown third parties in China. In 2025, the Naval Criminal Investigative Service said in a letter responding to questions from Cline that it had identified concerns with the company and briefed the secretary of the Navy and other Defense Department components in 2021 and 2022 to have the devices removed.
Cline’s office found last year that PAX manufactured devices — similar to tap-to-pay kiosks — were in use in cafeterias in the Rayburn and Longworth House office buildings. Although current law prohibits PAX devices, the kiosks avoided scrutiny because the primary contractor was engaged for a separate service, according to Cline’s office. The devices were removed March 30 after Cline raised concerns with the House Administration Committee.
Cline said allowing Chinese-operated point-of-sale technology in Defense Department facilities increases the “risk of exposing sensitive data to our foreign adversaries.”
Cline represents Virginia’s 6th Congressional District.
-The Salem Times-Register
