3 reasons secure payment solutions matter to your business
Having secure payment solutions—it’s a topic that’s on everyone’s minds these days. If you accept, process or store sensitive card information, you simply cannot afford to not be highly concerned with securing your systems. Here are three reasons why securing your payments matter to your business.
Failing to secure your systems can cost your company thousands of dollars
If you don’t secure your payment systems, your company can suffer in the way of financial losses—both in terms of leaving your company vulnerable to a data breach or by being susceptible to penalties for unsecure systems.
Despite concerted efforts among all those in the payments industry, the costs of data breaches are on the rise. A 2015 IBM study of more than 1,500 industry experts “found that the average consolidated total cost of a data breach is $3.8 million”, which represents a 23% increase since 2013. That same study found that the cost per sensitive record stolen to be $154, up from $145.
If your company isn’t PCI compliant, you may also be subject to penalties. Levied by the banks and credit card networks, these penalties can range from $5,000 to $500,000. The actual amount of the fines for not being PCI compliant are based on your PCI compliance level and the length of time your systems have been out of compliance.
Failing to secure your systems can cost your business its reputation
If your business’s systems are not secure and you suffer a data breach, you will almost undoubtedly see damage to your brand’s reputation and consumer confidence. A 2015 study by Gemalto reported that “only a quarter (25%) of all respondents feel that companies take the protection and security of customer data very seriously.” Today’s consumers are increasingly aware of how important companies must take data security—and are quick to take their business elsewhere if they feel a company is being irresponsible with their sensitive data.
Failing to secure your systems can cause you to lose customers to your competitors
Simply put, if your competitor is doing a better job at securing customer data and making customers feel comfortable that their data is secure, then there are going to be security-conscious customers who will choose to do business with them over your company. Especially if your company has suffered a data breach, customers will be much more inclined to take their business to a competitor that has not suffered such a loss. A SafeNet, Inc. study of over 4,500 adults in five major global economies found that 65% of respondents would never—or were very unlikely to—shop or do business again with a company that had experienced a data breach in which financial data (credit card information, bank account number or associated login details) was stolen.
Taking the time to secure your payments systems is not something that should be done as an after-thought. Instead, security should be a primary topic of conversation with your payments processor from Day One. Make sure you choose a processing partner that takes securing payments seriously.