Debit plagued by security concerns: survey

Just 40% of consumers feel confident in the security and safety of their debit cards, J

The findings shine a light on consumer security concerns related to debit use at the point of sale, because that payment method is linked directly to consumers’ liquid assets. 

Fraud has become a growing problem for banks and payments companies. The rise of real-time payment options such as the Federal Reserve’s forthcoming instant payments system, FedNow, could result in more fraud headaches, given its speed and irrevocable aspect. 

“As the potential for fraud grows due to digitization and economic conditions, it will influence customers’ payment choices at the point of sale,” the June 29 J.D. Power post said.

Although the launch of FedNow could provide a springboard for the pay-by-bank payment option at the point of sale, that could depend on consumer confidence in the security of debit payments in the near term, J.D. Power said.

Fewer than one-third of bank customers currently get alerts about suspicious activity on their accounts, but 64% said they want banks to flag such activity, J.D. Power reported.

Findings are based on responses to an April J.D. Power poll of 4,000 retail bank customers, and from a retail banking study conducted by the firm last year that collected 77,696 consumer responses, a spokesperson for J.D. Power said.

By Caitlin Mullen on July 5, 2023
Original link