(BPT) - Today, in 2023, there are more credit cards than Americans - with over 441 million credit cards issued across the country. Paying with credit is an extremely popular payment option for several obvious reasons. With just the swipe of a card, consumers can use their credit cards to make safe, secure, and efficient transactions.
But that's not all! Thanks to the innovation of electronic payments, there are more credit card payment forms than ever that are constantly being developed such as tap-to-pay options, QR codes, and virtual cards. With credit cards, paying has never been easier.
The alternative to electronic payments is to pay with physical cash, which, unfortunately, comes with some risks.
The reality is that cash creates major security concerns. Perhaps the most major concern is that cash is vulnerable to theft. Physical currency is much riskier to deal with and harder to track down. Unlike electronic payments, it is extremely difficult to trace or recover cash once it is stolen, making it an attractive target for thieves.
To help prevent the risks associated with cash transactions, businesses are forced to spend money to bring in costly security measures. These security measures can include anything from on-location guards to armored cars for cash transport. If it weren't for the risks that come along with cash payments, the money used toward these security measures could be better utilized for resources like business innovation or employee benefits.
Not only do consumers bear the cost of cash, but retailers also suffer the consequences. Data reveals that U.S. retailers lose an estimated $40 billion each year to cash theft. On the other hand, credit cards are equipped with advanced fraud protection. Financial services companies spend billions of dollars each year to bolster cybersecurity and ensure secure transactions for consumers.
It's safe to say that credit cards are the most effective payment method because they provide both protection and convenience at the checkout counter. For consumers and merchants alike, security is of the utmost importance when it comes to making or receiving a payment.
Credit cards provide advanced security features such as EMV chips, PIN numbers, and transaction alerts. The good news is these layers of protection ensure that your transactions are safe from fraud attempts and allow consumers to shop with ease. The bad news? This crucial card security may not be around forever.
Proponents of proposed credit card legislation want to implement routing mandates that could jeopardize fraud protection. If passed, this legislation could redirect billions in consumer spending to less secure, higher risk payment networks. Ultimately, this bill could affect the security and innovation that credit cards provide to us every day.
