Emerald Business Systems Blog

A ‘Breach’ in Customer Loyalty

Posted in PCI,Restaurant by ebs4pos on March 6, 2010

Compliance with the Payment Card Industry Data Security Standards PCI DSS continues to be a hot topic in hospitality circles, and for technology writers. In fact, large volumes have been written on the topic, with countless articles offering best practices and reporting on non-compliance penalties, such as increasing fees and commissions. It’s been reported, also, that the hospitality industry continues to struggle with compliance. The American Hotel and Lodging Association’s PCI Primer1 reports that upwards of 55% of credit card fraud comes from the hospitality industry, and the smallest merchants Level 4 account for more than 85% of compromises, with a noticeable increase in risks coming from franchisees.There is one area, however, that remains difficult to measure: consumer confidence. What is the tangible impact to customer confidence and company reputations when a security breach occurs? The University of Delaware is conducting a study, with the assistance of graduate student Ekaterina Berezina, on the impact of poor security on consumer confidence. Specifically, the study seeks to understand the impact of a credit card breaches on service quality, guest satisfaction, future revisit intention and the likelihood of recommending the brand/hotel to others word-of-mouth intention.

via A ‘Breach’ in Customer Loyalty | In This Issue | Hospitality Technology: Technology Resource for Restaurant/Lodging Executives.


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