Posted on Monday, April 28th, 2008 at 2:33 pm
Gartner Says Banks Are Promoting Less-Secure Forms of Debit Card Payments Despite Consumers’ Preferences for More-Secure Transactions
Gartner
Banks and credit card issuers have put significant efforts into marketing contactless and signature-based debit card payments, but they have failed to win over consumers, according to a survey by Gartner, Inc.
According to a survey of 4,500 online U.S. adults, conducted in August of 2007, (which was representative of the online U.S. adult population), consumers prefer alternative payment types that earn banks less revenue, but which consumers believe are more secure.
“Despite significant marketing campaigns by banks and card issuers to steer consumers towards using debit cards with a signature — ostensibly so that the banks can earn more interchange revenue — consumers prefer entering their personal identification number (PIN) to pay for groceries with their debit card over all types of signature-based card payments, whether credit or debit,” said Avivah Litan, vice president and distinguished analyst at Gartner.
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