Cybersecurity fears drive SMBs to third-party payment services

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High-profile breaches highlight the need for secure credit card processing.

Between 2010 and 2013, there was a 25 percent drop in small business processing online orders as traditional credit card merchants. Instead, they turned to third-party payment services, primarily due to concerns over cybersecurity and costs.

Molly Day, vicepresident for Public Affairs at the National Small Business Association, says, “There is a growing concern about cybersecurity in small business – generally considered those companies with less than 500 employees – because accepting and processing credit card payments directly can open you up to greater cybersecurity risks.”

In a 2013 UK study released by PwC and InfoSecurity Europe, feedback from 1,402 businesses with less than 250 employees showed that 87 percent of small businesses had a security breach in the previous year, up 76 percent from the previous year; and, frighteningly, 63 percent of small businesses – nearly two out of three – were attacked by an unauthorized outsider in the last year, up more than 50 percent from the previous year.

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