Despite the convenience factor associated with credit and debit card payments, there are a lot of drawbacks as well. Despite introducing new security measures to reduce fraudulent payments, Visa forces retailers to swipe cards as well, which are far more prone to fraud.
Does Visa Even Care About Its Customers?
There are several ways for retailers and merchants to accept credit card payments, as payment terminals have evolved throughout the years. Adding new layers of security to the most common form of payment is of great importance, Especially when considering how card payments have always been subject to high amounts of fraud.
When customers swipe their credit or debit card through a payment terminal, the device registers the Track 1 and Track 2 part of the magnetic strip on the back. Embedded within these tracks is all of the information associated with the card, including card number, expiry date, verification code, and user information. If the payment terminal in question is infected with malware, hackers can intercept this sensitive information and use it to clone payment cards.
Not too long ago, prominent credit card issuers – namely Visa and MasterCard – added an extra layer of security to their payment cards. EMV technology allows retailers to accept payments by letting customers enter their card PIN code, rather than swiping the plastic card. This effort was made to reduce the number of fraudulent transactions, as well as cutting down on cloned cards through infected payment terminals.
But for some unknown reason, Visa is not enforcing the PIN payment method, as they force retailers to accept pay-by-swipe as well. Even though the company acknowledges this latter option is a significant fraud risk, it is also the most lucrative business model for Visa, as they generate more revenue from every transaction.
There is a fine line to be drawn between making big profits and ensuring consumer payments are safe at all times. For the time being, it appears as if Visa prefers the money over their customers, which is not a positive sign for the future. Moreover, this begs the question as to why they offer new security measures while still forcing retailers to accept the archaic way of credit card payments as well. Visa does not seem to care all that much about customers of their security at this stage.
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