Protect Your Consumers, Protect Your Business
Consumer perceptions are integral to managing the user experience while online shopping, and only thoughtful and careful management of this process leads to repeat business and success. Some important current perceptions on security were revealed by a recent survey conducted by Javelin Research on behalf of eBillme and First Data. It asked consumers the following question: If you were to experience identity theft as a result of online shopping, who would you consider primarily at fault? The responses showed that a majority (60% of those surveyed) put the merchant at fault, followed by 22% who didn’t know, 10% who said other, and 8% who blamed the payment provider.
On the other hand, when asked who they would turn to for assistance upon experiencing identity theft, the leading answer was the payments provider, at 42%, and not the merchant. 17% responded that they did not know who to go to for help, 14% would go to the merchant, and another 14% would go to the police or a law enforcement agency. 5% chose other, and 3% selected the Federal Trade Commission (FTC).
These results suggest two things. Firstly, merchants should carefully evaluate what payment providers they choose for their shopping sites, lest it reflect badly on them. A good payment provider will minimize the risk of identity theft and provide a good experience for customers. Secondly, consumers need more education on where to turn for assistance should identity theft occur. Protecting consumers with a secure payment provider is crucial for the integrity of their private information, the safety of the transaction, and the merchant’s long term business success. Here are some questions for merchants to consider when evaluating payment options for their sites:
About Customer Information
- Does the payment option collect personal information (such as DOB or SSN)?
- Does the payment option collect personal financial information (such as card number, routing numbers, or bank login/passwords)?
- Does the payment provider store this information?
- Is their storage process/facilities secured?
- What happens if there is a data breach?
- Is the payment option susceptible to phishing attempts?
- Is ID theft easy to commit with the payment option?
About Protection and Processing
- How does money flow from the customer to your account?
- What level of protection does the payment option offer a customer?
- Are there limits to the coverage?
- Is the consumer liable for any of it? Are there deductibles?
- Is there a time limit after which the customer is liable for the total amount?
- Does the payment option offer addition protection to you and the customer?
- Does the payment option force you to underwrite the payments?
- Are there any NSF and Chargeback risks with the payment option?
