Congressman Ben Cline introduced the Servicemember Payment Data Privacy and Security Act on May 13 to prevent federal facilities from using Chinese hardware in point-of-sale technology, aiming to reduce the risk of foreign adversary infiltration.
The proposed legislation seeks to prohibit the Secretary of Defense from contracting with retailers who use payment processing equipment, systems, or services operated by countries of concern such as China, Russia, Iran, and North Korea beginning Jan. 1, 2027. This move comes amid concerns about data security for servicemembers and sensitive government transactions.
Cline said allowing Chinese-owned and operated point-of-sale technology in Defense Department facilities increases “the risk of exposing sensitive data to our foreign adversaries.” He added, “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.”
According to a Treasury Department finding in 2021 cited by Cline’s office, devices manufactured by PAX Technologies—a Chinese-based company—were found transmitting encrypted data to unknown third parties in China. In a letter sent in 2025 responding to questions from Cline, NCIS indicated it had identified concerns with PAX Technologies devices and briefed Navy leadership between 2021 and 2022 so that the devices could be removed.
Cline’s office reported discovering last year that PAX-made tap-to-pay kiosks were being used in cafeterias within House Rayburn and Longworth office buildings despite current law prohibiting their existence. The kiosks evaded scrutiny because they were provided through a contractor for a separate service. After these concerns were raised with the House Administration Committee by Cline’s office, the devices were removed on March 30.
Ben Cline is currently serving in Congress representing Virginia’s 6th district after replacing Bob Goodlatte in 2019; he previously served as a delegate at Virginia’s state legislature from 2002 until his election to Congress according to Congressman Ben Cline’s official website.
