Consumer protection is a vitally-important concern for the payments space. However, if not managed properly, the practices in which we engage to defend consumers against fraud and abuse can carry serious consequences for merchants and financial institutions.
In the latest episode of Fintalk, host Steve Warner (VP of Business Development, Fi911) sat down with Craig McClure (Director of Relationship Management, Fi911) and Becky Clements (Director of Payments, UK Finance).
During their 35-minute chat, these three payments industry experts discussed consumer protections in fintech. Specifically, they asked: in a world of new payment methods, advancing technology, and rapidly changing consumer demands, are we doing enough? Also, are decades-old protections still working for consumers, and what could be the implications of changing those mandates?
“When you hand over a payment card with an acceptance brand on it, you’re entering into a ‘leap of faith’ that the payment will work,” says Craig. “There are some guarantees around that. One of those guarantees is that, if something goes wrong, there’s a way to fix that.” However, over time, problems began to arise surrounding these consumer protections.
“With COVID-19, more people are using cards because more people are buying things online,” Becky explains. “So, I think some merchants have really woken up and smelled the coffee when it comes to disputes and chargebacks.”