between retailers and credit card issuers, one major source of argument and friction remains unresolved. That issue, that source of ill-will and dispute, is the question of responsibility, accountability, and liability for losses associated with credit card "breaches".
A "breach" arises when individual consumer
The mischief and financial losses which result from the misuse of stolen credit card data can be extremely costly to the retailer, card issuer and the consumer.
|Kiss It Good-bye...!|
Retail card breaches are not an infrequent occurrence as most credit union card issuers know. Most frustratingly, retailers and merchants have a well-established reputation for failure to acknowledge their card processing lapses. Deny, stall, and delay are favorite tactics.
In the meantime, the consumer feels threatened, uncertain, and betrayed, while the credit union bears the costs of notification, card replacement, and trying to help manage the outrage and frustration of the members who have been victimized.
Had an example of the very high "reputation cost" of a breach to the credit union just last week. Was on the receiving end of a complaint call from a highly infuriated, female credit union member of long-standing. Didn't even get the slightest opportunity to offer my explanation that "the CU didn't cause the breach" before:
|"And further more..."|
Well, you get the picture (and she was just "warming up"), but what made this situation particularly frustrating for me was ...
my wife !!!
If merchants and retailers continue to demand reductions in interchange fees, then out of fairness they must start taking responsibility for their breaches ...
... and start taking the calls from my wife !