Payment and Data Security
Utilizing payment security to win new customers
Data security is a high priority in the payment processing industry. The breaches at major retailers in recent memory have highlighted the importance for protecting sensitive customer information after the point of sale. Credit and debit card purchases are becoming increasingly popular, and it seems they are driving down the frequency of cash transactions.
According to Javelin Strategy and Research®, cash payments dropped 10 percent of volume between 2012 and 2013, or close to $86 billion (1). Although cash is still a widely used method of payment, consumers will continue to adopt digital technology to make payments, which is why restaurants must enhance their payment processing security now before it's too late.
Credit and debit card transactions are growing each year due to their convenience and ability to track purchases from both a merchant and consumer standpoint. Even with the threat of payment security, everyday customers use cards to make a payment. In the restaurant industry, new technology - such as pay at the table solutions - is emerging as a viable option for increasing turnover and improving the overall diner experience. The cutting-edge payment processors are designed with security in mind, and businesses can use the enhanced protection as a market differentiator for their brand.
Use security to win over customers
The recent media coverage of high-profile breaches has concerned the general public in terms of payment and data security. A recent TSYS™ survey found 83 percent of consumers were aware of recent hacking incidents, while 52 percent were concerned their data would be compromised in the future. The concern has impacted so much that 37 percent of respondents said they changed their buying behavior because of the recent data breaches.(2)
Although consumers are concerned about payment security, restaurants can use this sentiment as a brand differentiator in their respective marketplace. The same TSYS survey found 31 percent of consumers were willing to pay for added security features. Restaurants that emphasize payment security - regardless of the method consumers make a transaction - can greatly benefit their brand name and reputation going forward.
New industry guidelines are aimed at improving overall credit and debit card security through EMV chip-based technology. EMV helps provide added security to card-based transactions, restaurants that are considering alternative payments must dedicate the same amount of dedication and prioritize transaction security in any new channel deployed.
While the initial investment in upgrading credit card processing hardware may cause restaurant owners to think twice, the value of protecting customer information brings multiple benefits. For one, breaches cost a business a lot of money; with added protection, restaurants don't have as much cause for concern. Additionally, a company can drastically strengthen its brand by emphasizing payment security. It's what consumers want in today's day and age; a secure network is a great way to encourage repeat business. While consumers worry about payment security, restaurants can fill diners' stomachs and ease their concerns all in one sitting.
1. Javelin Strategy and Research, May 21, 2014
2. Tsys, 2013
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At Your Fingertips
The impending shift in liability for card-present fraud is driving a transition to EMV. Are you ready? This handbook can help you prepare.
Vantiv Integrated Payments is ready for EMV and has the technology and a network of providers that merchants need to enter the new era of payments.