The unfair levying of late fee on credit card payments have affected consumers, making it difficult for them to eliminate debt. Fortunately, the new credit card legislation now requires banks to give 45 days notice before making changes to an account, prohibits late fees until payment is at least 30 days past due, and restricts fees for making charges over one's credit limit. These changes should result in savings for the consumer.
Customers Moving to Take Action
In view of these reforms and the problems over the last few years with identity theft and data breaches at the merchant services companies, consumers are now taking responsibility for protecting their assets. Javelin & Research has revealed the results of a survey which they took last year that 37% (of consumers) said they were using credit cards less." Shoppers are opting to pre-pay for purchases and are seeking secure websites when shopping online.
Secure websites are identified with a lock icon in the web address bar, a logo from an Internet security provider or green address bar which appears on websites which use the Extended Validation Secure Sockets Layer certificate provided by VeriSign. Also, a secure website begins with "https" instead of "http." Secure websites are safe because the data is encrypted before sending it over the Internet.
“Encryption is the conversion of data into a form, called a ciphertext, that cannot be easily understood by unauthorized people.” The more complex the ciphertext, the harder it is to break the code, and the more expensive it is to implement the program. The only way to break it is by decryption which involves having an authorized person unlock the key to the code.
Firms Considering Losses
Most companies spend an average of one percent of revenue on information technology services. As a result, most websites are not secure. Companies are opting for firewall protection instead of encryption, because of the time involved in setting up encryption services and t n processing transactions via encryption. It is possible for a business owner to set up a secure website on its own with security software, if there is someone in the company who is computer savvy.
A recent study by the Ponemon Institute, a global leader in data protection, has revealed that the data breaches cost businesses more money and that because of the economic climate, U.S. businesses cannot afford to be without data breach protection. Therefore, business owners must be proactive in protecting their data and the data of their customers.
In conclusion, the economic crisis has raised issues of safe transactions online which is causing consumers and businesses to take responsibility in protecting themselves from losses.
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