Consumers view chip cards as a solution
In today’s environment of high profile security breaches and privacy threats, the fact that 45% of credit cardholders are very concerned about hackers gaining access to their personal account information isn’t a surprise. A majority of cardholders think that both store and online purchases are not very secure, and they don’t think enough is being done by credit card companies, merchants or the government to prevent fraud – according to a Phoenix Marketing International survey of 3,000 credit card owners conducted in March 2014.
Awareness of chip cards is low (only one-fifth of consumers are very familiar with them) but once the product is understood, two out of three cardholders think chip cards would be very important to their credit card security.
For point-of-sale store purchase, the research concluded that consumers would choose a chip credit card over a magnetic stripe card by a five-to-one margin. “Among consumers saying that chip cards offer them the level of security and convenience they’re looking for, most (62%) opted for chip and PIN transactions over chip and signature transactions,” said Greg Weed at Phoenix Marketing International.
“While card use hasn’t changed much as a result of the security breaches at this time, concerns are increasing and could begin to impact behaviors in the future,” added Mr. Weed.
The Phoenix report, ‘Credit Card Security & the Impact of ChipCards’ is part of an ongoing research study, Credit Card Monitor, that surveys cardholders each quarter on a variety of topics including card ownership, use, wallet position and loyalty. Click here to download a free excerpt from this report.
About Phoenix Marketing International
Phoenix Marketing International is a premier global marketing services firm providing its clients with tailored, unique insight into their customers and markets via a wealth of existing proprietary data. Coupled with custom research products and the latest qualitative and quantitative techniques, Phoenix has extensive research experience across the Automotive, Financial Services, Healthcare, Converged Technology and Media, Restaurant, and Travel/Leisure sectors. From the strategic definition of consumer needs to effective marketing program implementation, PMI provides profit-driven market solutions and is committed to maximizing a client’s Return on Marketing Investment (ROMI) by leveraging the ability to attract and retain new business through cost efficient data acquisition and statistical modeling techniques. Founded in 1999 by Chairman and CEO, Allen R. DeCotiis and President, Martha Rea, Phoenix Marketing International has established its global presence with offices in major locations such as New York, New Jersey, Boston, Philadelphia, Raleigh/Durham, Detroit, and London.