Credit cards have become a way of life for us, and the days of having to carry large sums of money in our wallets to pay for purchases are fleeting. We have become dependent on rectangles that conveniently hold our income. Over the last decade, vast changes with credit card processing have occurred, resulting in both positive and negative consequences.
Upgraded Point-of-Sale Systems
Image via Flickr by nan palmero
In the past, if you wanted to purchase something from a street vendor or smaller establishment, you would usually buy only in the form of cash or sadly walk away if you didn’t have enough cash to make a purchase. Fast-forward to the present where Square is a favorite tool among small businesses. Square is a point-of-sale system which allows vendors to conveniently use hardware from their phones to accept payments remotely.
Independent vendors such as food trucks, artisans, and street performers can travel on the go without fearing the loss of profit if a signal doesn’t exist, as manually keying in payments is an option. You don’t have to worry about a contract, and the setup, which includes the Square card reader attachment, is free. This arrangement makes for desirable and convenient use of credit cards to pay for purchases.
Chip Technology
Skimming is one way credit card fraud occurs. Technology has made it easy for skimmers to steal the data of an unsuspecting victim’s card. The data is then transferred to a duplicate card where all information is stored and used. Skimmers don’t even have to physically touch the card because they’re able to steal data by holding a phone over a wallet for a few seconds with the use of a unique app.
With this threat, however, comes a new way to offer protection: enter chip technology. Chip technology offers new measures to protect data from being breached. Although chip technology is helpful, cards with a combination of both a magnetic strip and a chip still exist, and these card types pose a high risk for fraud.
C2C vs. B2B Safety
Consumer-to-consumer credit cards (C2C) and business-to-business credit cards (B2B) have different safety levels. Most consumers have C2C credit cards that are vulnerable to fraud because of the lower amount of measures taken for protection. B2Bs have added levels of security concerning the information needed for completing a transaction, and these card types are therefore safer. Both initially require the same information such as credit card number, billing address, and card expiration date. However, B2B credit cards need a higher level of specification, including sales tax, merchant, and shipping details among pieces of information.
B2B credit cards give protection and added trust to businesses with more significant amounts of money on the line. Credit card companies that offer B2B credit cards also provide detailed reports to ensure that employees don’t misuse funds and that tracking of customer buying habits occurs.
Credit cards are beneficial and convenient for both consumers and vendors, but as time goes by, it’s essential to stay vigilant and up-to-date on new methods of credit card processing.
