Visa Prepaid Clearinghouse Service Creates Centralized Database to Better Detect and Prevent Fraud Schemes on Prepaid Cards
“Visa’s Prepaid Clearinghouse Service will deliver a comprehensive compilation of prepaid account-level data from across the industry, which will help reduce prepaid fraud losses for consumers, financial institutions and their clients,” said
Value assessments now begin with financial institutions and their program managers providing PCS with information such as enrollments, load funding, provisional credit requests, and fraudulent activity to check the database for risky activity. This analysis will allow for unique optimization as assessments are completed. Subscribing participants will then receive real-time alerts to be used in their fraud review decision process.
By participating in Prepaid Clearinghouse Service, participants will have access to a holistic view of prepaid fraud across the industry, enabling them to detect and protect their customers and their portfolios from fraud efficiently and effectively. Reporting information into PCS will be required for all U.S. Visa-issuing financial institutions and program managers, yet PCS is capable of supporting multiple network-branded prepaid cards. All U.S. Visa prepaid issuing financial institutions and their program managers will be required to report into PCS by
“Fraud is a constant threat for prepaid program managers, so being forewarned of what attacks are happening across the industry can help them prepare their defenses,” said Ben Jackson, Sr. Analyst of
The Prepaid Clearinghouse Service is modeled after Visa’s Issuers’ Clearinghouse Service (ICS), which was created to help reduce bankcard credit and fraud losses. All Visa-issuing members submit information on both fraudulent applications and consumer credit card applications for use during the application and underwriting process. Even today, issuers using ICS continue to show an average incremental lift of more than
Forward Looking Statements
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Visa is a global digital payments network 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 47,000 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, ahead of time with prepaid or later with credit products. For more information, visit corporate.visa.com.
Andrew Gerlt, 650-432-8375