According to many industry experts, the moves made by federal regulators to increase credit card processing protection has been positive but more should be done.
In a recent statement, Tomas Gordon CEO of debt resolution firm ClearOne Advantage said that credit card security fees collected by companies such as Bank of America, Citibank and Discover, totaled $2.4 billion. However, the release noted that a small portion, 21 percent, went toward paying customers for issues. Gordon also noted that many consumers were under the false belief that they would be protected no matter what from the merchant services issue.
“These plans are being marketed to credit card customers as a safety net for unforeseen misfortunes, but all may not be what it seems,” said Gordon. “The belief among consumers that these plans act as a type of emergency insurance is misleading and regulation of this auxiliary product is necessary.”
A number of customers may need to reexamine security plans in light of major breaches. One of the biggest happened in March, when hackers stole 1.5 million credit card numbers.Back To Blog