The surge in such charges arrives as consumer spending plummets, leaving card issuers and consumers at a rapidly growing risk of account fraud.
The rise in such attempts arrives as millions of Americans failed to make card payments in April. A recent TransUnion report showed the share of accounts falling into "financial hardship" programs jumped 3.2%, or 14.7 million accounts, in April.
How do we combat this rise in credit/debit card fraud which costs both merchants and consumers alike?
Across Europe, where HowToPay a wholly owned subsidiary of Confidia AG a swiss based group that has a strong presence, contactless payment is seen as the answer with its widespread use that will continue to grow. However, this payment method still has a way to go before it is commonplace in the USA. Mobile payments such as the one HowToPay provides also gives increased security for merchants and consumers alike.
With these apps, consumers link their credit and debit cards to their app of choice. When it comes time to pay, they hold up their phone to the NFC terminal, which makes an instant payment. This is a lot faster than payment via a traditional credit card, which can take 15-20 seconds to process.