If your small business isn’t updating its data security tools and payment processing methods regularly, it could really cost you.
The Relationship Between Customer Loyalty and Data Security
According to the Small Business Payments Spotlight, nearly 40 percent of consumers have had their credit or debit card, bank account or other personal financial information stolen. And 20 percent of those consumers who have had their information stolen said they would not shop with a small business that has experienced a data breach.
In addition to the tangible cost that small businesses have to pay in order to resolve the breach, which could add up to more than $50,000 according to the report, suffering such a breach could cost you even more in lost customers.
Of course, there are things you can do to provide some extra protection and security for your data and the data of your customers. The report offered a few areas where small businesses could look to improve, including updating POS systems to accept EMV chip card payments, investing in employee training for handling payments securely and purchasing security software.
Bank of America Merchant Services’ Head of Small Business Jill Calabrese Bain said in a company release, “As we reviewed the data from small business owners and consumers, the surprisingly strong connection between customer loyalty and payments security and convenience really stood out. We were intrigued to find that nearly a third of small business owners want and need more education about mitigating fraud and other risks to payment security.”
The Small Business Payments Spotlight features even more insights about payment security and consumer preferences. You can view the full report on Bank of America Merchant Service’s website.
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