The prospect of having one’s own payment credentials being compromised is certainly not appealing for the mass majority of consumers. There is a hassle of re-entering payment card information when there is a reissued card for subscriptions and other aggravations. However, for the most part the consumer does not bear the responsibility for keeping credentials safe nor the expense for the dubious transactions that may result. The article seeks to remind folks that they are indeed paying in the end, and it is indeed in the own best interest to be aware of fundamental ways to preserve the integrity of payment information.
It’s fascinating that organisations are paying such large fines and at the same time protecting their customers fully from the consequences. As companies introduce 2 factor authentication and more sophisticated algorithms analysing customer spending patterns, there is real investment in reducing the likelihood of data breaches and its impact on the consumer. Ultimately, it’s not simply a question of whether a bank or a retailer is required to pick up the tab. Most organisations are out there to make a profit, so the cost of a data breach is inevitably going to be passed down to the consumer in some way. Fines, compensation payments and insurance premiums will be all be redistributed to the consumer via higher fees from banks or prices from retailers.
Mercator Advisory Group feels that the time may have come for businesses cater to consumer payments to breakout the individual cost borne to incent and alter client behavior to exercise discretion in how and with whom they share their payment credentials. While fraudsters and data hacks will be around for the foreseeable future, enlisting the help of all participants in the market is in the collective best interest.
Overview by Joesph Walent, Associate Director, Customer Interactions Advisory Service at Mercator Advisory Group
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