7 Stories That Highlight the Importance of Payment Security

Payment security needs to be top of mind, especially given the increase in ways to pay. With the EMV liability shift deadline right around the corner and data breaches dotting the news cycle, getting serious about payment security and taking measures to safeguard your business is key.

Just in case you’re still not convinced, here are eight recent, headlines that highlight just how important it is to prioritize payment security and keep your customers’ information away from the reach of hackers.

Retail Data Breaches Making Headlines

Data breaches aren’t just a reality for larger businesses—they affect retailers of all sizes. While news of these breaches may not make headlines in the weeks after an attack, it’s important to remember that, like an elephant, shoppers never forget. A recent survey of 1,060 U.S. consumers found that 70 percent of consumers could correctly identify companies that had been breached. Additionally, 15 percent said they stop shopping at breached retailers, while 23 percent said they stop using breached payment methods.

  • Target Pays Up for 2013 Data Breach: Following Target’s data breach in 2013 which left 40 million customer credit card numbers compromised, the company reached a settlement with Visa, agreeing to pay Visa card issuers up to $67 million to cover costs. Target is now working on a similar deal with MasterCard. While it’s OK to be relieved that your business hasn’t met the same fate, Target’s breach should serve as a warning to retailers that security breaches are an all-too-real threat.

  • Carphone Warehouse Hacked: Recently, carphone Warehouse reported a “sophisticated cyber-attack” of the company’s IT systems in which personal data of as many as 2.4 million customers may have been compromised. Names, addresses, date of birth and bank details, as well as the credit card data of 90,000 customers was likely accessed by hackers. The company was criticized for its slow response, which serves as a reminder that it’s important to develop a breach response plan in case of an emergency.

  • Eataly NYC Confirms Data Breach: Global Italian food market Eataly confirmed that its NYC Retail Marketplace was affected by a data breach earlier this year. Customers who made a purchase at the marketplace between January 16, 2015 and April 2, 2015 may have compromised financial card payment data. Did we mention small businesses aren’t immune to breaches?

Credit Card Companies Prepare for EMV and the Future of Payment Security

With the EMV liability shift rapidly approaching, credit card companies are preparing for the future of payment security. That means getting retailers ready for the shift as well as looking to new solutions that could become a reality down the road.

  • MasterCard Talks EMV and Beyond: President of Enterprise Security Solutions at MasterCard, Ajay Bhalla, sat down with The Wall Street Journal to discuss the company’s preparation for EMV and what’s on the horizon for payment security. MasterCard is looking to ensure security across all payment types with the launch of chip cards. The company is also working on artificial intelligence and robotic technologies that may ensure even greater security in the future.

  • Visa Reports Slow EMV Adoption: According to a report released by Visa, 117 million EMV cards have been issued (that’s 28 percent of total cards being released), but only 250,000 merchants have been EMV enabled (representing just 5 percent of the U.S. merchant base). Our recent survey also showed that small businesses are among the most hesitant to make the changes necessary to accept EMV.

Mobile Making Headway in Payment Security

As Apple, Android and Samsung battle it out for dominance in the mobile payment space, industry leaders continue to search for new ways to secure customer data.

  • Facial Scans for Mobile Payments Coming Soon: More news from MasterCard: The company will begin testing facial recognition technology this fall. If all goes well, the credit card provider may use facial scans as an added security measure for consumers making mobile payments. Curious whether new technology is right for your business? Check out our guide to deciding.

  • World’s First Heartbeat-Authenticated Mobile Payments: It looks like payment security may have some unexpected players. Nymi, a Canadian-based company that develops a wrist-worn heart-rate monitor called the Nymi Band, says it has enabled the world’s first biometrically authenticated wearable payment using your heartbeat.

Ready to brush up your approach to payment security? Check out our EMV resource center here and our step-by-step guide to accepting mobile payments here.

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