Friday, February 08, 2008

Gartner Report: Banks Pushing Consumers To Less-Secure Payment Methods

Evan Schuman writes on StorefrontBacktalk:

The major credit card brands—and the banks they work with—do a fine job talking up security when they're at podiums or writing news releases. But when it's a choice between consumer security and lower transaction fees? Faggedaboutit. Fees win out every time.

At least that's one of the core conclusions from a report released Thursday from technology analysis firm Gartner Inc.

With "signature fraud rates ten times higher than PIN debit as of the first quarter 2007," Gartner analyst and report author Avivah Litan said, the banks pushing for the signature-based options has solely a money-making purpose. And consumers, according to the report, aren't buying it.

More here.


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