ISSUE 392: THE HIGH-TECH OFFICE--Alan
Zisman
Fear of giving credit card numbers over the Net
unfounded compared to risk of phone, mail, fax Apr
29 1997
The Net seems to attract more than its fair
share of paranoia from the media: On a more or less daily basis, we can
read, hear or view pieces decrying hackers, pornography, cults,
terrorists and sexual predators loose on the Net. Somehow, porn in the
corner grocery is seen as normal, while its availability on-line is
newsworthy.
One of the big stumbling blocks in the growth of
on-line sales over the Net is a public perception that it's dangerous
to type a credit card number into a form on a Web page. Can we know who
has access to that information as it passes through multiple computers
on its path from sender to recipient? BIV reader Jonathan
Chilvers, of Mayne Island's Oceanwood Country Inn (www.gulfislands.com/mayne/oceanwood)
is not alone in worrying about this.
He wrote: "As keepers of a small country inn, we take
guests' credit card numbers for deposits to guarantee bookings.
Everybody seems totally happy to divulge this information over the
telephone or by fax. But some people feel that horrid things may happen
if they put their number in an e-mail message.
"Since it therefore appears that their mistrust is not
of me, what could go wrong for them? Is it indeed more risky to send
your credit card number by e-mail than by phone, mail or fax? Or more
risky than leaving credit card slips bearing your number, name and
signature in any store or restaurant you patronize?"
In fact, Jonathan Chilvers is correct -- most of us
happily engage in risky behaviour with our credit cards every time we
give the number over the phone, or even when we let a restaurant server
take the card out of our sight to the cash register; in fact, there is
probably a higher risk of our number being abused in these ways than
over the Net. Nevertheless, because the Net is new and still a
mysterious medium to most, users remain apprehensive. As a result,
merchants trying to carry out business over the Net are making efforts
to ensure that these transactions are more secure than the ones we all
take for granted using more traditional means.
Festival Distribution Inc. (FDI) is a
Vancouver-based CD distributor that grew out of the Vancouver Folk
Music Festival. This winter, they set up a Web site (http://www.festival.bc.ca/)
as an adjunct to their existing mail-order business. When you think of
folk music, the Internet is probably not the first thing that comes to
mind. Acoustic guitars, maybe granola -- but not high tech. But like
Oceanwood Country Inn and other Web-sales sites, they've had to worry
about security. According to FDI's Jack Schuller: "We now have
the standard scrambler security set up on the site. I think that it is
interesting that credit card security on the Net is such an issue when
we receive daily phone orders from people all over the world who do not
have any problem giving their card number over the phone lines. How
secure is that? In the three and a half years that we have been
developing the mail-order business, we've had one problem with a
customer that was indirectly related to a credit card. Someone wanted
to surprise a friend with a CD ordered from us. The friend flew into a
panic [thinking his] card had been stolen. Really, the Web is
unbelievably smooth.
"The Web is proving to be interesting.... [W]e have
had about 4,000 hits over six weeks. Most people look at our spotlights
and often download the sound bytes. Not very many people access the
catalogue or order. We have had more success advertising the fact that
we have a print catalogue on various newsgroups -- folk, blues, Celtic,
bagpipes, world etc."
Notice what seems to be a common theme -- people are
more likely to use the Web as a source for information and
entertainment, so make sure that your business's site is informative
and entertaining. (FDI is busy adding sound bytes and pictures of its
artists.) But when it comes to actually making a purchase, many Web
users are more comfortable browsing a print version of your catalogue,
picking up the phone or sending a fax. Last year, a U.S. survey found
that only 10 per cent of current Internet users reported having made an
on-line purchase.
In fact, a more recent survey suggested that a solid
majority of on-line consumers -- a full 60 per cent -- said that they
didn't trust giving out personal information to Web-based merchants. As
a result, when faced with an on-line form, 41 per cent go somewhere
else, while 27 per cent reported simply filling in the form with lies.
Faced with that sort of customer suspicion, don't be
surprised if posting your catalogue on the Net doesn't immediately
translate into big bucks in on-line orders.*
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