Special Report Payment and Collections
In a June Washington Post article titled "Ubiquitous Technology, Bad Practices Drive Up Data Theft," Jonathan Kim dubbed 2005 the year of the data breach. Indeed, a recent string of high-profile cases of compromised or stolen credit card data have given companies that process, store or collect credit card data a collective black eye.
The proliferation of credit cards since the 1970s has propelled the direct marketing industry forward. As the beneficiaries of card-not-present transactions, direct marketers need to be proactive when it comes to safeguard-ing this highly sensitive customer data.
This special report examines two major concerns direct marketers have when it comes to payment processing: the security of customer credit card data and managing payment fraud. In "The Digital Dozen," Solutionary's Chris Noell answers commonly asked questions about the Payment Card Industry Data Security Standard implemented this past June, and why direct marketers need to comply.
U.S. cardholders have a great deal of protection in card-not-present transactions, so merchants carry the majority of the risk. As online sales, in particular, continue to grow, it's projected that both the dollars lost to fraud and the cost of managing fraud will keep pace. Paul Garcia and Karen Markey of First National Merchant Solutions provide best practices to protect businesses from fraud in "Minimize Your Risk."
Direct marketers need to walk the extra mile to not only protect their own businesses from fraud, but to rebuild consumer trust.
—Lisa Yorgey Lester, Managing Editor
The Digital Dozen
What direct marketers need to know about PCI
By Chris Noell
The Merchant Risk Council estimates that 60 million credit cards were compromised in 2004 and that this number will double to 120 million by the end of 2005. To better protect credit card data, Visa and MasterCard have collaborated to create a common payments security standard, which has resulted in the Payment Card Industry Data Security Standard (PCI). Other U.S. card companies have since endorsed PCI within their security programs as well.