Customers Willing to Pay Extra for Card Fraud Protection, survey results reveal
While few financial institutions want to admit it, payment card fraud is continuing to increase year-over-year. And while consumers themselves may not feel the brunt of credit card fraud due to “zero liability” protections, debit card fraud is another story altogether.
Ever-Increasing Card Fraud
According to FICO’s 2023 review of Debit Card Skimming, there was a 96% increase in the number of debit cards compromised from the previous year, and a 30% increase in the number of financial institutions with compromised cards. These increases are despite the efforts of FIS to better educate their consumers on protecting themselves from fraud, but putting the onus of protection on the individual has proven ineffective.
This is likely why a 2022 survey conducted by FIS (Fidelity Information Services) showed that a majority of card owners would be willing to pay more for an on-card fraud protection mechanism, such as EVC® – a dynamic CVC/CVV micromodule built into an on-card display.
Consumers Willing to Pay Extra for Fraud Protection
According to the survey, 68% of debit card owners would pay an extra $1 per month for a card with this type of fraud protection, and 60% would pay $2 per month. Even when surveyed on this technology for credit card – where they are less liable for fraudulent activity – 54% said they would pay and extra $1 per month.
These survey results imply that most consumers are concerned enough about card fraud to take on an extra expense for more preventative technology, rather than continuing to bear the burden of caution and diligence. Similar to paying for antivirus software, consumers seem willing to pay an extra cost to their issuers for a more secure product.
Note: This survey was conducted by FIS in the US across 2000 participants.
For more information on EVC, a battery-free module developed by Ellipse, click here.
