Credit card lenders could be facing more than $300 million of card replacement costs if customers affected by the Sony data breach decide to replace their credit cards.
0.o Edit:This is horrible!
Probably will cost card lenders very little or nothing since there is no evidence that credit card numbers were stolen.
I think 300 mil. is a little much don't you think?
Yeah, it's very much an inflated amount. First, they're still thinking that 77 million accounts = 77 million users. This just isn't true. Second, then they're just saying that each user will cost a CC company about $4 for replacing a CC. It likely won't cost them much more than $1 for the replacement since the new cards are created anyway and the people who work on the phones would be working anyway. They're not hiring new staff or printing more cards than usual because of the incident. It's a very poor attempt at statistical analysis, but common in the news today.
Those newly replaced cards has to be restocked. People have to man the phone to replace those cards, prepare the paperwork and mail it out. How is that not printing more cards and hiring in more workers? If you are not, then other work get pushed aside that still has to be done or you pay overtime. Inflated? Likely, because 70 million people probably don't have credit card stored with Sony. That figure is considerably smaller, but it doesn't take into account lost revenue while the card is being mailed as well. That might be further delayed if they don't have enough cards on hand.
I agree, on top of that fact, not all ps3 users even have or use CC on the PSN.
@gamingdroid: The cards cost them pennies and they do replacements on almost a daily basis. People man the phones regardless of this type of event or not. They're not going to hire more just for it. They don't have "other work" to do, either. Their job is to field customer calls day in and day out. Paperwork is automated. The person on the phone keys it in, letter and card are generated, someone throws them in an envelope, they mail it off. This costs them about as much as it costs them to mail me a CC offer with a fake CC attached to it. Something I get at least once a week.
I can't speak for how much it cost to replace a credit card, pennies do sound really low..., but I'm sure the analyst has more information than I do. However, all the other work still has to be done, the calls has to be taken, cards have to be printed (with your name on it), activated and processed for mailing. If there is work to be done, somebody has to do it. These companies don't have staff that sit around twiddle their thumbs (unless they are employees of the government) so I don't see how you can claim there is no cost, resources and work to this. Those fake cards they send you, their cost is justified by their business model. So if it was costly, it would have been accounted for in marketing cost and part of acquiring new customers that they don't seem to have issue providing a $100 to. This on the other hand is a pure loss, and one could argue it is part of their ongoing operating cost and accounted for.
I'm not saying there's no cost for having people answer the phone, I'm saying that cost would already have been used. Whether this happened or not, those people would still be there answering the phones. The fact of the matter is that it's not millions of people at a single CC institute, but spread out. The impact this has on a single institute won't be as much as people think. And, the cost of cards really is very low.
This is why Sony had to find out if anything was at risk before issuing a statement. Just imaging if they made everyone panic and you canceled credit card and it turned out to be nothing. Pointless cancelling reissuing
Indeed. And now it's sounding like credit card information wasn't leaked anyway. Trust the media to make sure you're always aware of the worst case scenario. If you aren't scared, you might change the channel!
It's kind of funny on how they always seem to find the FUD factor of news. Before we knew what info was stolen, "PSN 70 million users CC info was stolen!" Now that they know, "PSN issue could cost banks millions!" Hey, where is the update on the first story telling people not to be afraid and that their CC info was safe, unlike what they originally reported? Oh, that's right, much easier to just put out something sensational rather than the actual news.
I'm sorry, but didn't you say you cancelled your credit card?? I also thought you suggested for people to just cancel their credit card too? "blackburn10 + 1d 1h ago And of course you believe the hackers. Besides just about everyone already canceled their credit cards and debit cards off of PSN so it really doesn't matter anymore.You would be a fool if you haven't done it by now"
Why do you want to wait for fraudulent charges to show up? Canceling your card after it has been compromised is not being overly cautious.
That makes too much sense.
Ahhh so the saying better to be safe than sorry doesn't apply in this fanboy jourlnalists world. It's over-reacting ....right...*** shakes head ***
The second you ever used a card online for anything it was compromised. This is just mainstream media trying to make mountains out of molehills.
So for days all we see is what a disaster this is, and how people's credit is going to wrecked, but now it's "Way to be overly cautious." LOL My card was due to expire and be replaced in a few months anyway, so I'm just getting a new one a little early.
Your credit cannot be "wrecked" because someone used your credit card illegally as you are not responsible for fraudulent use of your credit card beyond the first $50, so long as you report the fraudulent use to your credit card company in a reasonable amount of time. That is the law.
Take that visa. That'll show you for giving me overcharge fees I deserved
good, card companies are thieves'
good, credit card companies stink.
Man that's a lot of Money
Thems the breaks.
Those affected? Credit card info wasn't stolen
It won't cost lenders a cent. If it is really that bad they will sue Sony for negligence and will probably win. Credit card lenders have way more lawyers then Sony... I doubt it is that bad though...
Ummm....whether the cards ate created already or not, you still stamp your name in cards like visa and MasterCard. That's in essence where some of that $3-$5 comes into play. Plus, resources like it security which will need to be redirected to this issue. Not good.
That's assuming everyone panics and cancels their cards in mass, i would cancel my card if i lost my wallet/was stolen ect, but since my card has no odd charges why bother.
At the very least everyone whos card was exposed will get a letter from the credit card company, and just the mailing fees for all those letters will be in the 10s of millions of dollars. After getting that letter many will opt to have their card replaced, which is more costs etc... All of which Sony will have to pay for. So the 300 million number might be large, but there will certainly be dozens of millions of dollars of damage... So
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