Cyber security fears drive businesses to third-party payment services

High-profile breaches highlight the need for secure credit card processing

Between 2010 and 2013, there was a 25 percent drop in small business processing online orders as traditional credit card merchants. Instead, they turned to third-party payment services, primarily due to concerns over cybersecurity and costs

Molly Day, vicepresident for Public Affairs at the National Small Business Association, says, "There is a growing concern about cybersecurity in small business -- generally considered those companies with less than 500 employees – because accepting and processing credit card payments directly can open you up to greater cybersecurity risks."

In a 2013 UK study released by PwC and InfoSecurity Europe, feedback from 1,402 businesses with less than 250 employees showed that 87 percent of small businesses had a security breach in the previous year, up 76 percent from the previous year; and, frighteningly, 63 percent of small businesses -- nearly two out of three -- were attacked by an unauthorized outsider in the last year, up more than 50 percent from the previous year.

Awareness of statistics like these has spread to consumer and merchant alike resulting in fewer consumers willing to enter credit card or personal information and fewer businesses willing to handle that information because it is booty for cybercrooks to plunder.

This story, "Cyber security fears drive businesses to third-party payment services" was originally published by Network World.

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