A survey report by American Express has found that nearly 77% of merchants in the US encountered some type of payments fraud and cost incurred to manage security are affecting the bottom lines of their businesses.
According to the 2019 Digital Payments Survey, online payments fraud increased to about 27% from 18% last year.
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The survey analysed the online and in-store payments trends in the US, said American Express.
Apart from the increase in online payments fraud, the study found rise in the number of merchants reporting vulnerability to fraud.
Specifically, 82% of merchants said their business is vulnerable to mobile transactions fraud, compared to 73% a year ago.
Meanwhile, 79% are vulnerable from online payments versus 74% last year and 66% from point-of-sale transactions, an increase from 55%.
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By GlobalDataAmerican Express added that 42% of responding consumers have had a fraudulent attempt to use their credit cards or other payment details.
In addition, 59% are worried about fraud while making an online purchase.
To address the rising concerns, merchants have been investing more to secure payment data. The study revealed that 33% of the respondents’ IT budget was used for payment data security, compared to 27% a year ago.
Of the respondents, 80% believe that technology to reduce the need for storing consumer payment information could be beneficial.
American Express executive vice-president Jaromir Divilek said: “The 2019 Digital Payments Survey shines a light on the most pressing needs for our merchants and customers, and the findings about the battle between convenience and security are striking.
“We believe that Secure Remote Commerce for digital checkout and contactless payments for in-person checkout will be significant improvements for both merchants and consumers in the US.”
The survey involved a total of 1,004 respondents.
