We need to be more aware of how we spend our money. There are advantages and disadvantages to the more recent American dependence on card transactions. Let’s look at advantages first. Cards are undoubtedly easier to carry, and they make it simpler to spend when we want to and how we want to. They’re easier on cashiers as well, as they make the issue of change irrelevant. For that matter, some see cards as more difficult to steal — while they are kept in wallets, they aren’t as loose as cash if stored properly. On the other hand, cards perhaps make it too easy for us to spend, to the point that it doesn’t feel like we’re spending too much money, and we end up spending too much. Cards also run the risk of being rejected because they’re too old, and they can be a pain for users to replace. Some just don’t like being dependent on cards. But the fact is that the biggest issue with cards is that they are not secure as we would like to think. All too often, fraud is committed both by users of credit cards and by people who steal credit card information on the seller’s end. Machines have been invented that facilitate the stealing of credit card information, and on insecure websites it’s too easy for payment information to be leaked or outright stolen. Luckily, card not present transactions are becoming more of a normal thing — and just in time. Let’s look into the serious issues of fraud surrounding credit cards, and how new payment gateway services are aiding in ending them.
Fraud: How Serious Is This Issue?
When it comes to cashless payment systems, fraud is a problem on the rise. Fraud has escalated alongside the Internet. The more dependent we become on technology, the more vulnerable we become to people using the technology to “hack” our information. It’s estimated that the U.S. loses $8 billion in card fraud on an annual basis. In 12% of these types of cases, the Internet is the first point of contact. With that being said, card fraud can occur even when people use their cards at ATMs or brick and mortar stores. This is a serious problem that can easily cost people their life savings if they don’t have their money well-distributed. We just don’t take this kind of problem as seriously as we should. Therefore, we don’t think twice about store secure information online, and we don’t take the steps necessary to protect it.
E-Commerce: How Cardless Transactions Benefit Them
It’s estimated that global e-commerce sales are $931,490 every 30 seconds through desktop devices and $269,683 through mobile devices. E-commerce sites rely on the fact that people can pay without cash, and this makes them more convenient for everyone. We’re addicted to shopping online, and nobody should have to give that up. Cardless payment processing services protect e-commerce sites because when a customer’s information is stolen, the e-commerce site loses reputability, and can in fact be held liable in some cases. While some e-commerce sites allow customers to save their card information in their accounts, it is likely safer for everyone involved to use separate gateway systems. If an e-commerce site wants to protect itself and its clients, it should perhaps invite customers to use payment gateway systems, and for that matter embrace these systems in the parent company’s own transactions.
Staying Secure: How You Can Fight Fraud
Payment gateway services are the only truly secure means through which people and companies alike can counteract fraud. With that being said, there are smaller ways in which you can prevent your information from being stolen. Never buy something from a site that you do not trust completely. Update your passwords on a regular basis, as well as your security questions. For that matter, be proactive about hiding your card information in public, and never use an ATM that does not belong to your bank.