Credit Cards and Risks Involving Data Compromise

The use of credit and debit cards has been increasing rapidly over the past few years, due to the fact that it is a convenient and quite flexible payment method. However, it does not come without its downsides.

As you may have witnessed yourself more than occasionally, credit card holders have to encounter incidents of fraud and charges that they have never made themselves. In the field of hotels, there is a great target group that can spend money via credit cards and this is all the hackers need to know about! So, if you are planning to use a credit (or even worse a debit) card for making hotel reservations, you’d better think twice!

Debit Card Is the Worst Scenario

When you pay using credit card, you can expect the coverage of not being held accountable for data fraud. This means that you can sign a form where it is stated that you are not responsible for the charges and the chances are that you won’t pay the price for the hacking activity!

Nevertheless, this is not the case with debit cards. The legislation there is not as generous and therefore you are advised to choose credit over debit, when one of the two methods seems inevitable.

Donald Trump properties have been the most recently discovered incident of credit card breach, which has been brought to light by Krebs. According to his article: “The Trump Organization just acknowledged the issue with a brief statement from Eric Trump, executive vice president of development and acquisitions: “Like virtually every other company these days, we have been alerted to potential suspicious credit card activity and are in the midst of a thorough investigation to determine whether it involves any of our properties,” the statement reads. “We are committed to safeguarding all guests’ personal information and will continue to do so vigilantly.””

This is not the only case of fraud. On the contrary, the Mandarin Oriental luxury hotels have also been exposed for the data compromise including credit cards. White Lodging and Hard Rock are just a few of the examples where credit cards have been exposed.

What is more, there is reasonable evidence backing up the fact that most of the smaller businesses do not have the resources to investigate such frauds. So, this leaves enough room for doubt as to how many more hotel operators and properties have not realized what is going on with the security layering of their credit card base.

Under the light of the ongoing discoveries, it is best for cash to be the preferred method of payment – when this cannot happen, trust credit cards over debit cards!

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