Consumers Trust Credit Card Companies over Retailers for Data Security
When it comes to protecting sensitive information, consumers trust their credit card companies significantly more than retailers. According to a new survey from the Electronic Payments Coalition, 43% of voters trust their credit or debit card company to keep their payment information secure, compared to just 11% who trust the merchant. 59% of respondents said they put “a lot” of trust in their bank’s data security efforts, and 53% said the same about their credit or debit card company.
EPC’s survey showed “the majority of voters” are concerned about making purchases with a large retailer because of recent data breaches. This aligns with a similar study from Transaction Network Services which showed two thirds of consumers were concerned about card security. 46% of respondents from the United States said they thought their information had been put at risk because of a data breach.
The TNS study also indicated consumers want retailers to be responsible for card security. 66% of shoppers said stores should be liable for protecting card information.
“Until there are similar data security standards for retailers as there are for financial institutions, community banks and credit unions will continue to take on the burden of card replacement costs, reimbursing customers for fraud, and monitoring for fraudulent activity,” said Molly Wilkinson, the executive director for EPC,.
70% of EPC respondents said there will be better solutions for card security in the next few years.