New Mobile Location Confirmation service uses real-time, geo-location
technology to prevent unnecessary purchase declines by as much as 30%1
SAN FRANCISCO--(BUSINESS WIRE)--Feb. 12, 2015--
Visa Inc., the global leader in payments, is introducing a new mobile
service designed to reduce unnecessary purchase declines often triggered
when consumers travel outside of their home area. Visa Mobile Location
Confirmation uses mobile geo-location information to more reliably
predict whether it is the account holder or an unauthorized user making
a payment with a Visa account.
“Wherever you are in the world, we want Visa transactions to be the most
secure, convenient and seamless payment choice,” said Mark Nelsen,
senior vice president of risk products and business intelligence, Visa
Inc. “By matching the location of the cardholder through a cell phone or
other mobile device, to the location of the purchase, Visa’s new service
will enable banks to feel more confident about authorizing a transaction
that might otherwise have been declined due to suspicion of fraud.”
While infrequent, unnecessary transaction declines can mean lost sales
for retailers, additional customer service costs for financial
institutions and, ultimately, frustration for the cardholder if unable
to make a purchase when traveling. According to Visa estimates, issuing
financial institutions spend hundreds of millions of dollars annually to
manage customer service calls related to pre-travel requests and to
research declined transactions.
By providing financial institutions greater intelligence when approving
transactions, Visa expects to reduce such declines by as much as 30
percent, impacting millions of transactions annually and improving the
experience for cardholders, merchants and financial institutions.
How it works
Mobile Location Confirmation is an optional service for consumers that
will be offered through participating financial institutions’ mobile
banking applications. The service uses mobile geo-location data in real
time as an additional input into Visa’s predictive fraud analytics.
Finsphere Corporation, a leader in the use of mobile data and
geo-spatial analysis, provides Visa an analysis of the account holder’s
device location data, which is then matched with the transaction
location in less than a millisecond, right at the point of sale. When a
cardholder’s mobile device is in the same location as the payment
transaction, the issuing financial institution can more confidently
approve the transaction.
How consumers enroll
To enroll in the service, cardholders download their card-issuing
financial institution’s mobile banking app and agree to the use of their
mobile location information for fraud prevention purposes. Consumers
receive the benefit of the service when traveling by ensuring their
phone is periodically connected to a mobile or Wi-fi network, and can
deactivate the service at any time.
Available to U.S. card-issuing financial institutions in April 2015,
Mobile Location Confirmation is another innovation from Visa designed to
provide issuing financial institutions with more information to help
protect against fraud while facilitating a better payment experience for
“Through Visa’s Mobile Location Confirmation service, we’re enabling
more precise fraud monitoring, which creates a better payment experience
for travelers, assists merchants and reduces unnecessary operational
costs for financial institutions,” added Nelsen.
To help increase approval rates for legitimate transactions and reduce
consumer frustration while traveling, Visa began offering other travel
services last year:
Visa Travel Authorization Tag allows issuers to identify when a
cardholder is traveling based on airline, rail, cruise or hotel
purchases made with their Visa account. By using this information as
an indication of cardholder travel plans, Visa is able to provide
issuing financial institutions important insights that could protect
the cardholder from fraud even if he/she did not call to provide
travel information before a trip.
Travel Notification Service allows cardholders to contact their
issuing financial institution online rather than by phone, making it
more convenient to notify their financial institutions with travel
information. Travel information is then automatically integrated into
Visa’s risk scoring engine to better identify potential fraud and
approve legitimate purchases.
About Visa Inc.
Visa Inc. (NYSE:V) is a global payments technology company that connects
consumers, businesses, financial institutions and governments in more
than 200 countries and territories to fast, secure and reliable
electronic payments. We operate one of the world's most advanced
processing networks — VisaNet — that is capable of handling more than
56,000 transaction messages a second, with fraud protection for
consumers and assured payment for merchants. Visa is not a bank and does
not issue cards, extend credit or set rates and fees for consumers.
Visa's innovations, however, enable its financial institution customers
to offer consumers more choices: pay now with debit, pay ahead of time
with prepaid or pay later with credit products. For more information,
1 Estimates will vary based on issuer adoption of the
service, cardholder adoption and approval decision
Source: Visa Inc.
Sandra Chu, +1 415-805-4124
Kim, +1 212-521-3962