Visa: Consumers Worried About Personal Information

"This survey reinforces what Visa has long believed -- that data security is an issue of paramount concern to consumers around the world," said Christopher Rodrigues, CEO of Visa International. "Trust is at the heart of our dynamic global economy, and that trust can be eroded if consumers' growing data security concerns are not addressed."

Data security is not a new issue and facilitating the protection of cardholder data has long been a priority for Visa. Over the last several years, Visa has developed a multi-layered product and service strategy to safeguard data and help prevent fraud. While levels of consumer concern are high, fraud as a percentage of Visa's volume has actually declined in the last decade with Visa's global fraud rate at an all-time low, accounting for less than one-tenth of 1 percent of Visa's global sales volume.

According to the research, advances in technology to authenticate cardholders would make 57 percent of consumers feel "much more confident" in the protection of their personal data. That is why at the World Economic Forum, Rodrigues reinforced Visa's commitment to security by demonstrating a breakthrough technology which generates and displays one-time use dynamic passcodes on a Visa card. This technology is currently under development and could soon give one more layer of security and peace of mind to consumers shopping online.

The research showed that globally data security issues surpassed environmental degradation (No. 2 -- 62 percent) and terrorism (No. 3 -- 58 percent), as well as other major issues such as job loss (57 percent), disease or epidemics (55 percent) and natural disasters (48 percent). "We asked consumers about issues which are personally salient to them, rather than about issues facing the country as a whole, which is more typical in this type of research," said Mike Dabadie, SVP of Harris Interactive, which conducted the survey in 12 emerging and developed countries. "The concern about the loss of personal and financial information is also far broader than just about payments," continued Dabadie.

In the research, consumers report changes in behavior, particularly when shopping online:

• 63 percent of consumers say they are more careful when disposing of financial statements
• 50 percent look at the privacy policies of companies with which they do business
• 62 percent of online shoppers are more discriminate about the sites at which they make purchases
• 24 percent report shopping less online and 26 percent less via the telephone

Actual e-commerce figures for Visa show global sales volume growth of 27 percent in 2005 over 2004.

"The concern over data security is broader than electronic payments," Rodrigues said. "But at Visa, we know that maintaining cardholder confidence is crucial to the success of the Visa system, and that's why we are committed to doing our part to contribute to a global solution. Through constant innovation, investment and education, Visa is committed to working with member banks, technology partners, merchants and consumers to support and enhance the security of cardholder data. But we are only one part of the solution."

Consumers also viewed broader education as part of the solution, 40 percent of consumers would feel more secure if they had more information about how to protect themselves against loss of their personal data. 36 percent indicated they would feel more much secure knowing that an independent organization was enforcing standards. To that end, Rodrigues said, "Visa supports the development of a new cross-industry forum that brings together all stakeholders in the payment chain to create an objective, stand-alone entity to manage data security issues for the industry."

Other potential measures cited by consumers included better enforcement of laws and zero liability for fraudulent use of payment cards, a protection already in place in Canada, the United States and Asia Pacific. Interestingly, more (47 percent) believe the protection of personal and financial data to be an international issue than a national one (36 percent), suggesting that the solutions, too, must be global in scope.

"The global payment system is only as secure as its weakest link," Rodrigues said. "To prevent future data security compromises, everyone, everywhere, that engages in commerce must take responsibility for their role in the payments chain, including, banks, processors, retailers, and consumers."

More information about the results of the global research, the dynamic password Display Visa card, and Visa's ongoing commitment to securing electronic payments can be found by visiting www.visa.com/datasecurity