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POLL: Will you now think twice about signing up for a loyalty card?

<a href="http://polldaddy.com/poll/7561256/">Will you now think twice about signing up for...
Newstalk
Newstalk

10.08 14 Nov 2013


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POLL: Will you now think twice...

POLL: Will you now think twice about signing up for a loyalty card?

Newstalk
Newstalk

10.08 14 Nov 2013


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The Irish Independent reports that both AIB and Permanent TSB have confirmed that a number of their customers have been affected.

More than 80,000 Supervalu, Axa and Stenal Line loyalty programme customers have had their credit card details compromised as a result of the European-wide online attack. Meanwhile, some of Electric Ireland's customer email details have been taken. Upwards of 500,000 European customers are said to have been affected altogether.

Tom Brady, the Irish Independent's Security Editor, told Newstalk's Breakfast that more companies are likely to admit they've been affected over the coming days:

Loyalty cards have become a common part of retail over the last number of decades. In Ireland, Superquinn introduced their SuperClub scheme in 1993, and the model has since been adapted by most major supermarkets and many other retailers, from petrol stations to clothing stores.

There are many arguments for and against such schemes. Many customers will benefit from the discounts and rewards afforded by participating. As the name suggests, businesses will be looking to build consumer loyalty, and also receive data about their spending and purchasing habits. This can allow the company to adapt marketing, stock and offers on both a general and individual customer basis.

The marketing and data collection aspects of loyalty cards are, however, considered negatives by many commentators, with some customers perhaps not aware of the true motivations behind the 'perks' they receive. Businesses too often question the justification of loyalty schemes, citing the high costs of operating loyalty cards ultimately amounts to few or inconsistent benefits. Customers and consumer groups frequently criticise individual schemes for offering few meaningful rewards.

Will the recent breach make you think twice about signing up for loyalty card schemes, or does it affirm concerns you already had? Will you be more reluctant to hand over credit card details alongside more general information? Should companies be doing more to counter potential data breaches, or are such incidents increasingly inevitable despite security efforts? Vote in our poll and leave your comments below.


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