Online shopping has left credit card owners vulnerable and susceptible to hacking, increasing usage of cash and ATMs. Credit Union Times cited a survey conducted by Sparks Research that found 56 percent of all credit card holders reduced their online card usage after a data leakage or fraudulent account activity. Of those surveyed, 78 percent said they desired greater card security for their data when shopping online.
While technologies such as EMV cards have cut down in-store thefts, credit card numbers remain vulnerable on online shopping platforms. For these reasons, cash and ATMs will continue to serve as a safe and reliable purchasing option for consumers. Banks and credit unions can provide ATMs that meets unique customer safety needs and create lasting relationships based on loyalty and longevity between the branch and consumer.
Online stores and boutiques within the United States are not the only ones left vulnerable after a data breach. According to Nerd Wallet, shopping at online websites in other countries can leave credit card holders more susceptible to data leaks due to unsecured networks and money conversions that must be made with the card.
For example, an online shopper in the U.S. may wish to purchase an item to be shipped from the United Kingdom. Since the U.K. uses the pound, an item's cost must be converted via online conversion charts. When an individual then makes the transaction, the payment data becomes vulnerable because of international network usage and unsecured IP addresses. This leads to customer information leakage and a greater need for physical payment security at ATMs.
Before paper money, options such as shells, beads, jewels and coins held value for historic societies in trade-based economies. Today, physical transactions of cash are highly valued and considered the primary source of payment in modern culture. Providing ATMs with unique services such as bill payment and EMV chip card acceptance are a few ways banks can provide new benefits in the age of digital payments.
As many establishments stay cash-only and online stores experience data leakages, the need for physical money will trump the advent of payment technologies. By providing safe and reliable machines that adapt to your consumer's needs, banks can maintain valuable customer relationships by offering easy access to ATMs on site.
June 9, 2016