68% of US-based online shoppers are not familiar with online fraud liability –study

Report shows that in spite of important factors such as fraud protection and security when shopping online, 68% of US-based online shoppers who pay with a credit card do not know their liability coverage.

The survey took into consideration consumers' criteria when opting for a payment method online and analysed possible opportunities for online merchants to turn the undecided shoppers to confident buyers.
The conclusions revealed that 81 percent of credit and debit card users consider fraud protection the most important factor in the selection of a payment option, almost 4 times more important than rewards. 60 percent of credit card users and 56 percent of debit card users are interested in product and service guarantees.

Nearly 45 percent of credit card users and 50 percent of debit card users are in search of price protection and want to be offered the lowest available price, 2.5 times over rewards or points earned from purchases for credit card users.
The study also revealed that 68 percent of credit card users and 65 percent of debit cardholders are unaware of the percentage of purchases they would be liable, in case their card were lost or stolen. 77 percent of credit card users claim that they would accept changes in the online checkout payment process if it increased security. Costs for fraudulent debit card purchases can reach USD 500 or more if the activity is not reported within a certain time period.

The study also stresses that, if given a secure cash-based payment alternative like eBillme, consumers can spend 13 percent more than credit card users and 47 percent more than debit card users.Despite the fact that eCommerce continues to register a rapid growth, there are still 74 million online consumers who do not buy online.
The survey was conducted by analyst firm JupiterResearch and commissioned by payment services supplier eBillme.