Visa Launches Mobile Location Service to Improve Card Payment Experience When Traveling
New Mobile Location Confirmation service uses real-time, geo-location technology to prevent unnecessary purchase declines by as much as 30%1
“Wherever you are in the world, we want Visa transactions to be the most secure, convenient and seamless payment choice,” said
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.
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
“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.
1 Estimates will vary based on issuer adoption of the service, cardholder adoption and approval decision