Point-of-sale security breaches could reduce customer loyalty

Over the years, more and more companies switched to point of sale (POS) systems which meant easier and faster transactions for their customers. Faster transactions would mean no more asking for change or exact amount, as just a swipe of the card would get the payment settled.

For a time, it seemed to be a great development, more especially because we are in the so-called digital age where almost anything could be done with the internet and our fingertips. It saved time, and was also very convenient for so many people because they did not have to bring so much cash all the time. It was also safer because people no longer have to line up to ATMs to withdraw cash when they want to purchase something. learn more Point of Sales

Then again, POS systems have caught the dismay of frequent shoppers when hacking news became popular. As a high number of retailers have been victims of hacking, people started wondering if POS systems were really safe. It was a natural reaction, for hacking meant their confidential information, like bank details, could be compromised. To say that people panicked would be an understatement. Some were even furious, as there was even a time when data were exposed online.

Some would debate that not a huge part of the population is being alarmed with the so-called security breaches. However, the argument would be how long before more people get discouraged in shopping with retailers victimized by hacks and other security breaches. Point of Sale machines at all retail outlets in India

It could even be more alarming for retail stores, as the blame is on them. Most people do not really understand how POS systems work, and just rely and trust the process mainly because they trust the store.  Moreover, even bigger companies have experienced hacking attacks, making people doubt the process and system even more.

The point is that no one is spared from online hacking attacks. It is equally shocking and frustrating that hackers today have really invested on what they do, and have become really great at it.

If you are wondering if retailers and POS system companies have done something to address the problem, here are what they have recently done for improved security.

  • EMV cards, or cards embedded with microchips, are now being rolled out. This enables real-time assessments on the purchase based on dynamic cryptograms, or even past transactions. These cards make it difficult for frauds to get away with their malicious transactions. Also, the special features of this card like the microchip and other security features make it harder for fraudsters to make fake cards to be used for transactions. In the same way, it is not only identity theft cases that are avoided, but also skimming incidents.
  • Point-to-point encryption is now being improved even more. Confidential account and transaction data get to be encrypted in the system, making it almost impossible for hackers to extract sensitive data to use for identity theft and hacking.
  • Tokenization, already being used by Apple Pay, assigns codes to payment data. This improves security by making sure hackers cannot access any sensitive data. This system also enables consumers to encrypt their data on the system so they don’t have to re-enter them.
  • These POS system companies have done a report where they made conscious efforts to assess the fraud costs to retailers, how it can damage businesses, and how it is expected to exist in the coming years. It is good to know that retailers and POS system companies recognize the problem and do not just brush it off.

Even when the world we live in is now made even better with high technology, we still have to note that there are bound to be challenges which would only motivate developers to improve existing systems for a better world.

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