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Online Fraud Liability Coverage a Mystery to 68% of Shoppers

Though fraud protection and security are important for online shoppers, the 68% of them who use a credit card do not know what amounts they would be liable for if their card or data were stolen - according to an eBillme report conducted by JupiterResearch.

The result is hesitation during the online checkout process - and lost sales - according to eBillme.

Debit-card users are equally unaware of the maximum liability coverage, the study found:

Fraudulent debit card purchases can cost the consumer up to $500 or more if the activity is not reported in the allotted time period.

Among other findings:

• Rewards/points earned are among the least-important factors for card users in choosing a payment option (only 17% say it is the most important). More important are the following:
  • Fraud protection - for 81% of credit and debit card users
  • Product and service guarantees - for 60% of credit card users and 56% of debit card users
  • Price protection and lowest available price offering - for 45% of credit card users and 50% of debit card users
• Some 77% of credit card users said to receive enhanced security on their purchase they would accept changes in the online checkout payment process.

“While e-commerce continues to rapidly grow, there are still 74 million online consumers who do not buy online,” said Marwan Forzley, president and CEO of eBillme. “This data shows us that consumers want to know how they are being protected from risks of fraud or other factors that can affect their purchases.”

Note: All chart images sourced from JupiterResearch/Ipsos Insight Consumer Survey, Nov. ‘07.

About the survey: JupiterResearch conducted a survey of 2,706 consumers selected randomly from the Ipsos US online consumer panel for eBillme. Data was weighted demographically and by determinants of online behavior (e.g., AOL usage, online tenure, and connection speed).