Comments on: Who Really Pays For Weak Retail Security? http://storefrontbacktalk.com/securityfraud/who-really-pays-for-weak-retail-security/ Techniques, Tools and Tirades about Retail Technology and E-Commerce Sun, 20 May 2012 01:49:40 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: Drew http://storefrontbacktalk.com/securityfraud/who-really-pays-for-weak-retail-security/comment-page-1/#comment-5700 Drew Fri, 23 Feb 2007 16:42:53 +0000 http://www.storefrontbacktalk.com/securityfraud/who-really-pays-for-weak-retail-security/#comment-5700 If we're talking about who ultimately pays more it's obviously the consumer. Regardless of any legislation the consumer is at the bottom of this feeding chain. When banks are held liable then it's the consumer that pays more in fees and through reduced margins on interest rates. When retailers are held liable then it's the consumer that absorbs higher prices as a result of litigation, penalties or (as described in this article) credit card fraud. A valid point is made with respect to the irony of retailers that are "punished" by their peers' security breaches but I believe it's important to remember that it is consumers that ultimately foot the bill. If we’re talking about who ultimately pays more it’s obviously the consumer. Regardless of any legislation the consumer is at the bottom of this feeding chain.

When banks are held liable then it’s the consumer that pays more in fees and through reduced margins on interest rates.

When retailers are held liable then it’s the consumer that absorbs higher prices as a result of litigation, penalties or (as described in this article) credit card fraud.

A valid point is made with respect to the irony of retailers that are “punished” by their peers’ security breaches but I believe it’s important to remember that it is consumers that ultimately foot the bill.

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