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the walls have ears
Yesterday I got a statement from my credit-card company. It was a transaction summary for 2005; I've never seen this sort of thing before. The front page informed me that last year I spent $X on food, $Y on entertainment, $Z on professional services, and so on for about 15 broad categories. That's the sort of thing that could be useful if you don't think about it -- but I'm the kind of person who thinks about it.
I'm not sure which possibility is more disturbing: that they are making inferences based on who the payee is (Giant Eagle sounds like groceries, etc), or that the merchants are providing the credit-card companies with categories for the transactions.
My record-keeping is not thorough enough for me to figure out which is more likely on my own. Perhaps I will ask them.
When I use a credit card I fully expect that the particulars of the transaction -- date, amount, and merchant -- are not private and might be mined. If it's really important to me, I pay cash. But I do not expect a description, even a high-level one, of the goods or services purchased to be part of that record.
I'm not sure which possibility is more disturbing: that they are making inferences based on who the payee is (Giant Eagle sounds like groceries, etc), or that the merchants are providing the credit-card companies with categories for the transactions.
My record-keeping is not thorough enough for me to figure out which is more likely on my own. Perhaps I will ask them.
When I use a credit card I fully expect that the particulars of the transaction -- date, amount, and merchant -- are not private and might be mined. If it's really important to me, I pay cash. But I do not expect a description, even a high-level one, of the goods or services purchased to be part of that record.
no subject
Not sure how the VISA system does it or Mastercard. It's all about the classification on the store, not the purchase. They use it to determine the rate involved to the store, and other things..
*THIS* one I don't mind them having so much. I don't think they get anything past what's reported on the statement, though, which isn't so bad.
However, Amex gets more details on plane trips and such from some vendors.. which is just a bit weird to see on my statement- it says flight to XYZ Place on it :_)
I do find these annual statements handy, for taxes. It's also really strange to see how *much* we spend!
no subject
If, on the other hand, merchants were supplying the categories, that would bother me even though it might produce more accurate statements. I mean, right now it's pretty harmless -- groceries, travel, auto, etc -- but what if the credit-card companies started asking the merchants for more details, and my (hypothetical) "pharmacy" turns into "morning-after pill" or "food" turns into "liquor"? We worry about the information the government can require businesses to track, and try to set limits accordingly, but government doesn't control what private industry can track, and private industry can then turn around and sell that information to the government (or anyone else). Some individual merchants track purchases through store affinity cards, and I'm free to use the card or not, but the credit-card companies are aggregators.
Granted, it's been obvious for a while that if you don't want to be tracked you should use cash. (I wonder how mail-order-porn businesses survive.) I guess I'm a little more concerned with what VISA does with all of my purchasing data than I am with, say, what Giant Eagle does with my grocery data. Heck, Giant Eagle actually pays me enough for that data that I'm willing to participate.
no subject
The rest of that already happens on some levels with those loyalty programs. The tag you get from Giant Eagle... that's tracking exact purchases. They probably don't do it on the pharmacy side, since that would be more problematic with HIPPA, but everything else... it's a free game.
I think this is less sinister than what they do with the loyalty card programs... There isn't that much information sent via the credit card terminals right now to VISA, so you're probably safe on that front... for now.
no subject
Yes, it sounds like that's what they do. Specific, point-of-sale, determination is the scenario I had wondered about; it sounds like that's not happening.
The affinity cards are different because I can use them or not, without changing how I conduct the transaction. If, however, using a credit card to make the payment were to cause the same data to be tracked, regardless of my intentions, that would be annoying. A database with all of my specific purchases would probably be valuable to someone; I've decided that a database of (some of) my grocery purchases in the hands of the grocery store doesn't bother me.