Secure credit card and debit card purchasing processes are a major concern for consumers. Most vendors no longer accept personal checks for payment. Consumers typically don’t carry large amounts of cash for purchases. Based on these changes in the way Americans do business, the use of credit and debit cards has grown considerably over the past ten years.
With the increase in the use of payment using credit, consumers want and need secure payment systems. Credit fraud that steals data and identities impacts the economy of this country significantly. Even though credit card companies have policies now that any credit theft will typically be covered either by the vendor or the credit card company, those losses eventually impact the cost of goods or services sold by those companies. The cost of card fraud in the United States each year is more than $8 billion. That money has to come from somewhere.
Based on these facts, vendors and consumers are looking for a more secure way of doing business. Laws have been passed to order all vendors to change to a more secure payment processing credit card system using the “chip” technology. However not all businesses have gotten around to implementing this more secure process. Some businesses are using payment gateway services. These services provide greater ability to verify and authenticate the purchaser and thereby providing for a more secure transaction.
Many consumers are more comfortable now purchasing online or with mobile applications. Every 30 seconds, sales generated through global e-commerce amount to $269,683 using mobile devices and $931,490 using desktop sales. Purchasing online often offers greater ability to use a more secure payment processing system or gateway service to protect a purchaser when the credit card is not physically present for the purchase.
In years past, one of the major purchasing events of the year in the United States has been Black Friday which is the day after Thanksgiving and thought to be the beginning of the holiday gift-buying season. Again pointing to the sharp rise in internet buying, in 2012, Thanksgiving and Black Friday sales met the projected rate of growth. However Cyber Monday (which is the Monday after Black Friday) had a 17% year on year growth and blew all projections out of the water with close to $1.5 million in sales.
As the rise in online sales continues, consumers are also looking for and companies are providing more and better ways of making a secure payment for those purchases. Consumers also want chargeback protection. Errors in processing orders, double processing of charges or fraudulent purchases remain a large concern and those who are doing the buying want to be assured of protection for overcharging and fraud. Secure processes must include policy and protection for these situations as well.
Shopping online, even without making a purchase, can make create the possibility of cyber attacks, stealing location and personal information. An internet website is the initial point of content for 12% of the cases of credit or debit card fraud. The hackers are able to find your search history and observe your actions in the website.
In response, secure apps are being developed and made available to consumers. Consumers can use these mobile apps to shop, compare and even connect to social media. Even the most able hackers have difficulty getting past a max 256-bit encryption, so that is what the most secure apps use now for data encryption techniques. Consumers looking to shop and make secure connections to a vendor and possibly purchase, will look for those more secure apps. This is a good way for vendors and businesses to promote their online business, by developing and making these apps available to their customers.
Bottom line, consumers are looking for protection from fraud and overcharging. Purchasers want a secure way to shop, whether online or in person, and make a purchase using credit, without fear of theft, fraud, overcharging, or the possibility of future identity theft. Businesses need to provide and maintain secure and encrypted processes to protect consumers as well as their own profits. Gateway payment services, encrypted apps, chip technology provide a good start.