In today's world, credit cards have become an indispensable tool.
They're utilized to make payments at a variety of locations around
the world. Credit card issuers frequently adjust their interest rates to
suit administrative functions and inflation rates as a result of
growing usage and demand. When a card insurer makes significant
changes, it must provide 45 days' notice (CFPB, 2017).
The Payment Card Industry and Data Security Standard (PCI DSS)
To protect cardholder data, the payment card industry and data
security standards were created. All organizations that transport,
process, or keep cardholder data are given guiled. The PCI DSS
provides twelve standards for implementing secure systems that
protect user data during storage, transport, and transactions. If a
merchant does not follow the criteria, the card brand may levy
penalties on the Marchant's acquiring bank ranging from $5,000 to
$500,000 per month (Wills, 2019). Around 46% of European
businesses and 39% of American businesses follow the PCI DSS
guidelines.
EMV Cards
Europay, Mastercard, and Visa are the acronyms for Europay,
Mastercard, and Visa. Smart cards, chip cards, and smart chip cards
are some of the terms used to describe them. They are cards that
contain a chipset that authenticates transactions. It protects
consumers and lowers the expense of user-reported fraudulent
incidents. Traditional credit card use has increased in the United
States, and as of 2019, there were 1 billion EMV cards, 3.7 million
merchants accepting EMV cards, and an 87 percent reduction in
fraud cases involving merchants who accept EMV payments.
Magnetic strips in the United States stored static data that could be
accessed in the event the cards were stolen (Kossman, 2021). These
cards do not prevent data breaches; rather, they make it more
difficult for criminals to acquire access to sensitive information.
RFID Technology
Radio waves are used to track tags that hold electronic data. Radio
Frequency Identification (RFID) is a term that refers to a method of
identifying a Animal tracking devices are widely utilized in retail
stores, hospitals, farms, and conservancies. They use extremely
secure encryption to ensure that data and transactions are
transmitted safely. It entails embedding tiny unique IDs inside the
tracked object. RFID tags are in good working order and have a wide
scanning range. They can be used to pay for goods and services as
digital wallets. Some current smartphones can scan RFID tags at
specific frequencies and support NFC connection. An RFID reader
can read a variety of RFID signal ranges if it supports multiple signal
ranges (Team, 2018).
Privacy And Security Issues That Could Arise in Conjunction with
The Use of Micropayments Using Payment Cards
Over the last decade, the use of payment cards has increased. Many
consumers prefer to pay for goods and services with their credit
cards since it is more convenient. However, the use of these cards
raises security and privacy concerns. These factors might have a
negative impact on a company's financial status.
Employee error might result in privacy and security concerns about
how client data is stored. It's a problem that many businesses
overlook, but it may cost them a lot of money. Employee mistakes
can result in data breaches. According to a Kaspersky study, 52
percent of firms admit that their staff are a weak link in their IT
security (Kaspersky, 2021).
When using cards for payments, improper storing of credit card
information is another privacy and security risk that is likely to
develop. Because the firm will contract a third party to process the
payments, it must select a third party that is PCI DSS compliant
(Wills, 2019). As a result, the company will be able to protect the
information of its customers throughout transaction processing.
Credit card fraud is another security concern when using cards to
make purchases. Fraud cases have decreased but not disappeared
after the introduction of EMV chips in cards. The focus of fraudsters
has switched to CNP transactions. These are card transactions, not
present transactions. The third-party payment processor should
ensure that the customer is protected from such sorts of fraud.
When using card payments, outdated systems might lead to privacy
and security issues. When a system is old, it is very easy for data to
be stolen. To avoid such incidents, the company must make sure
that its system is updated and patched on a regular basis. The
Equifax data breach is a good illustration of how attackers might
access sensitive information such as social security numbers,
addresses, and credit card numbers (Gressin, 2017).
Pos skimming is another security risk that might arise while making
payments with a card. It is a procedure in which information is
compromised during transactions at the point of sale. An employee
swipes the card through an out-of-site skimmer, which records the
card information and allows them to make internet purchases later.
The company wants to start a new business that accepts credit
cards. It's a fantastic endeavor, but the corporation should think
about all of the security and privacy concerns that accepting card
payments can raise. The problems listed above may originate in
several departments, but they will eventually have a negative impact
on the company's finances. Security and privacy lawsuits can be
costly to win (Clapper, D. L.) (2010).
References
2017 CFPB. Is it possible for my credit card provider to change my
account terms? | Consumer Financial Protection Bureau [online] The
Consumer Financial Protection Bureau (CFPB) is a federal agency
that protects Can my credit card company modify the conditions of
my account? https://www.consumerfinance.gov/ask-cfpb/can-my-
credit-card-company-change-the-terms-of-my-account-en-70/ [As of
October 1, 2021].
D. L. Clapper (2010). The Hannaford Brothers data breach resulted
in stolen information and fraud. 16, 121, Journal of the International
Academy for Case Studies.
S. Gressin is a professor at the University of California, Berkeley
(2017). What to do in the wake of the Equifax data breach 8. FTC
2021, according to Kaspersky. The Human Factor in IT Security:
How Employees Make Companies Vulnerable from the Inside [online]
Kaspersky.com. https://www.kaspersky.com/blog/the-human-factor-
in-it-security/> [Accessed on the 3rd of October, 2021].
S. Kossman, 2021. CreditCards.com has eight frequently asked
questions concerning EMV credit cards. CreditCards.com is a website
that provides information about credit cards. Visit
https://www.creditcards.com/credit-card-news/emv-faq-chip-cards-
answers-1264/ for more information. [3 October 2021] [Accessed 3
October 2021].
T. Team RFID Technology for Events: A Beginner's Guide - Token
Blog. [online] RFID Tokens http://www.gettoken.com/beginners-
guide-rfid-technology-events/> [Accessed on the 3rd of October,
2021].
L. Wills. The Payment Card Industry Data Security Standard is a set
of guidelines developed by the Payment Card Industry Data Security
Standards Council Americanbar.org is a website dedicated to the
legal profession in the United States. The Payment Card Industry
Data Security Standard can be found at
https://www.americanbar.org/groups/litigation/committees/minority-
trial-lawyer/practice/2019/the-payment-card-industry-data-security-
standard/. [Oct. 1, 2021]
