Every time a new transaction technology emerges, people worry about its security. This was true in the past with personal checks, credit cards, automated teller machines, e-commerce, and online bill pay — and it’s true now with mobile payments. Although a small portion of U.S. consumers already make mobile payments, many more are worried that their sensitive data could be compromised.
As a merchant, you can help customers overcome their apprehension about mobile payments by telling them the following:
1. Many card readers contain encryption capability. When you swipe a credit or debit card
on a smartphone, the data transferred is encrypted three times. This makes the code very tough to hack or intercept.
2. Customer data is not saved on your device. Credit and debit card numbers are not saved on your smartphone after a transaction is processed. Therefore, if your device is ever lost or stolen, the thieves will not have access to any customer data.
3. All security features meet accepted industry standards. Customers may recognize the terms SSL (Secure Socket Layer) and PCI DSS (Payment Card Industry Data Security Standard) if they shop online. Reputable mobile-payment apps and infrastructure comply with those established industry standards.
4. Geolocation helps confirm transactions. Your mobile device has a geolocation feature that records where you were when a given transaction was processed. This helps establish where the device was when a purchase took place and cuts down on fraud attempts. It’s also impossible to do with a credit card.
5. The e-receipt doesn’t list sensitive data. Like standard credit card receipts, virtual receipts from mobile transactions (which get emailed to the customer) reveal only the last four digits of the credit card number used. Therefore, if a customer’s email account gets hacked, the hacker won’t find any credit card information linked to receipts.
6. Your device is password-protected. As a result, whatever information might be stored on your smartphone is more secure than it would be otherwise. Tell customers that no one can access your phone, in the event that it’s lost or stolen, because you use password protection.
7. Customers can find out more information about mobile-payment security. Refer concerned customers to a page on your website (or another reliable source) that spells out all of the security measures and protocols surrounding your mobile-payment system. The more customers know about security, the more likely it is that they’ll embrace mobile payments.