Changing Perceptions On CNP

September 2012 Integrated Solutions For Retailers

An interview with Jim Johnson, SVP of retail payments, FIS, by Matt Pillar

Card issuers are working hard to change the consumer perception of CNP (card not present) fraud.

The growth of e-commerce as a percentage of retail sales has been slower than many analysts expected some ten years ago. That said, the mobile revolution is fueling a bit of resurgence in e-commerce activity. Do consumers’ CNP payment reservations contribute to the slow growth of online payments, or are other factors at play? Will mobile make CNP payments safer or riskier? For answers, we turned to Jim Johnson, SVP of retail payments at FIS.

What are the most significant current threats faced by consumers who engage retail brands in CNP transactions?

Johnson: Regulations have forced retailers to make online shopping safer and more secure, reducing the threats faced by consumers who shop online. In fact, many of the larger card breaches in recent years have involved consumers who have used their credit or debit cards in a brick-and-mortar location. Therefore, the perception that paying with a card in-store is safer than paying online is finally beginning to fade way. Over the last few years, competitive advertising among card issuers has made consumers more aware that they are not liable for fraudulent charges made on their accounts. In the event that a breach does occur, the biggest threats are the inconvenience of dealing with the aftermath of phone calls and paperwork required to resolve unauthorized charges and the inconvenience of being issued a new card.