A number of major data breaches have grabbed so many headlines in recent months that consumers are certainly starting to take notice, and these incidents might have shaken their confidence in certain types of payments. As such, it might be wise for small business owners to make sure their companies are prepared for any potential concerns their customers or clients may have about their safety.
Today, the majority of consumers are still confident in their ability to safely make debit or credit card payments when they shop, but the number of people who do might be slipping, according to a new survey from Balance Innovations. For instance, only 39 percent are now “very confident” in the safety of such transactions, and another 49 percent are just “somewhat confident.” This might further be reflected in changing plans to utilize other types of payments in the future.
Will cash become king?
Interestingly, while nearly three out of every five people surveyed said that they have not made any changes to the ways in which they make purchases, but close to a third say they’re planning to make cash a bigger part of their regular purchase routine.
“Many consumers like to use cash because it’s anonymous and carries little risk, but for retailers it can be very time consuming to manage and reconcile,” said Shelley Bosler, senior vice president for strategic initiatives for Balance Innovations. “Increased usage of cash among consumers makes it all the more important for retailers to optimize cash processing policies at both the corporate and store levels.”
Moreover, it seems to be that older consumers are less trusting of non-cash payment methods these days, the report said. Just 30 percent of people between the age of 50 and 64 years old were very confident about the safety of credit or debit purchases at grocery stores, compared with 49 percent of those between 18 and 24. However, even 46 percent of that younger demographic now uses cash more often than they did before.
Owners who are likewise worried about the chances of being hit with a data breach might want to review their systems for stopping and detecting such incidents. It might also be wise to invest in a type of small business insurance known as tech insurance, which can help to mitigate the costs associated with paying for the fallout from such an incident, which can stretch into the tens of thousands of dollars or more.