With the EMV live date of October 1, 2015, fast approaching, we thought it would be worth visiting just how much a potential data breach might cost the average small business.
The information is courtesy of First Data.
90% – The percentage of all breaches that impact small merchants according to Trustwave Research
$36,000 – The average cost of a data breach for a small merchant
$20,000 to $50,000 – The cost of a mandatory forensic examination, even if you are just suspected of having a data breach
$5,000 to $50,000 – PCI Compliance fines
$3 to $10 – Card Replacement (per card)
Additional direct costs:
Customers notification costs – this involves multiple forms over multiple months
Credit monitoring costs – up to a year of credit monitoring and counseling for customers affected by a breach
Liability for fraud charge costs – yes, the lawyers will be visiting
POS System upgrades or replacement costs – think adding EMV ready terminals, or upgrading off of Windows XP is expensive? How about replacing your entire system – software and hardware, pending your forensic exam.
Reassessment for PCI Compliance costs – after upgrading or replacing your POS system, before you can take credit cards again you’ll need an assessment from a Qualifies Security Assessor (QSA)
Additional non-direct costs:
31% – Percentage of customers terminating their relationship with merchant responsible for the breach
Reputation damage – Digital PR lives far longer than traditional broadcast PR
Potential loss of payment card privileges – Visa, MasterCard, and AMEX can refuse to do business with you. Are you ready to go all cash?
Your Time – Devoted to cash draining costs and investigation vs. revenue-generating customer relationships
It’s time to call IMS now at 1-800-882-0627 to schedule your EMV upgrades and overall security readiness!
IMS is a technology services company that has been serving the Retail Industry for over 25 years. While we specialize in serving small/medium businesses, we have also completed projects on some of the world’s biggest stages. We help businesses efficiently manage operations by improving processes, implementing unique and comprehensive integrations, and providing additional sources of data intelligence. We believe that by providing businesses with the tools, technology and insights needed to gather and analyze their data more effectively, we can help them create a competitive advantage.