Online merchants should make it easy for customers not to store information such as credit card numbers with the store. Those who provide this feature (unfeature) should be promoted. Perhaps a special category of merchants who refuse to store the information.
Not storing the data protects against all-too-common data breach. The shopping experience for the customer can remain equally smooth if the customer uses automatic form fill feature in the browser: websites should be designed to work well with autofill (they already mostly are), and the merchant site can encourage using such a browser feature or extension.
The task of safeguarding data then falls on the customer, e.g., password protect browser autofill data and avoid keystroke loggers, but there is no longer a conflict of interest nor is there a single point of failure for many customers, an attractive target for hackers.
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