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The subprimes crisis in 2007 didn’t have a
direct impact on these brands, contrary to banks.
The only one example of crisis communication about it is the
American Express’s one. During this period, the company monetised its customer
relationship. It gave a reward of 300 dollars to its risky clients who accepted
to close their count and to pay back their debts. American Express didn’t
reveal the numbers of concerned people, but it’s about few rentable clients
and, above all, who presented a risk of no pay back of credit.
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Thus, in crisis communication, Visa and
MasterCard illustrates themselves in communications about credit card fraud
essentially.
In 2005, MasterCard International reported that more than 40
million credit card accounts of all brands might have been exposed to fraud
through a computer security breach at a payment processing company, perhaps the
largest case of stolen consumer data to date.
MasterCard said its analysts and law enforcement officials
had identified a pattern of fraudulent charges that were traced to an intrusion
at CardSystems Solutions of Tucson, Ariz., which processes more than $15
billion in payments for small to midsize merchants and financial institutions
each year.
About 20 million Visa and 13.9 million MasterCard accounts
were compromised. A MasterCard spokeswoman, Sharon Gamsin, said an infiltrator
had managed to place a computer code or script on the CardSystems network that
made it possible to extract information. She would not elaborate on how long
the breach might have lasted, on when the inquiry began or on whether any
infiltrators had been identified. She did say that the breach occurred this
year.
Thus, in this case we notice that the crisis communication
for credit cards brands is essentially based on the main information without
providing more details about the major issue. There is no information about the
time, the way that the issue would be solved.
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The other main issue is about the competitors.
For instance, in 2012, Visa, MasterCard and major banks agreed to pay retailers at least $6billion
to settle a long-running lawsuit, which alleged that the card issuers conspired
to fix the fees that stores pay to accept credit cards.
The pact, which lawyers involved in the case are calling the largest antitrust settlement in U.S. history, is seen as a major victory for merchants who have long complained about the billions of dollars in so-called 'swipe' or 'interchange' fees they pay to banks for each purchase made using plastic.
Noah Hanft, general counsel for MasterCard, said the company believed its interests were 'best served by an amicable resolution' of the case.
The pact, which lawyers involved in the case are calling the largest antitrust settlement in U.S. history, is seen as a major victory for merchants who have long complained about the billions of dollars in so-called 'swipe' or 'interchange' fees they pay to banks for each purchase made using plastic.
Noah Hanft, general counsel for MasterCard, said the company believed its interests were 'best served by an amicable resolution' of the case.
Visa Chief
Executive Officer Joseph Saunders said the settlement was in the best interest
of all parties and did not expect the settlement to impact its current
guidance.
Thus, crisis
communications of credit cards brands is always about reassuring and
encouraging the public opinion in order to comfort their leadership in this
market.
