New Visa Service to Help Gas Station Retailers Reduce Fraud at the Pump
Intelligent analytics help merchants identify fraud before it happens; Fraud rate dropped more than 20 percent in pilot test
While global fraud rates across the Visa payment system remain near historic lows – less than
“Visa Transaction Advisor uses sophisticated analytics based on the breadth and scale of VisaNet data to flag the riskiest transactions,” said
How It Works
After a cardholder inserts the card at the pump, Visa analyzes multiple data sets such as past transactions, whether the account has been involved in a data compromise, and nearly 500 other pieces of data to create a risk score. This allows merchants to identify those transactions with a higher risk of fraud and perform further cardholder authentication before gas is pumped.
The time and costs associated with resolving fraudulent transactions can be substantial for both merchants and financial institutions and inconvenient for cardholders, which is one of the reasons why fraud prevention is critical. Visa’s solution is easy to implement – using existing message fields and formats as well as pump software or hardware to ensure minimal impact to merchants and acquirers.
Several fuel merchants who piloted the technology over the last several months noticed a decrease in fraud, without negatively impacting their consumers’ experience.
- “We are excited about VTA as a tool to help mitigate fraudulent transactions. We saw a 23 percent reduction in the rate of fraudulent chargebacks during our
Los Angelespilot program,” said Gabriel AndresPorras, Merchant Acquiring Manager, Chevron. “This was done with minimal impact to the customer experience, making secure payment at the pump as convenient as possible.”
- “We provide fuel to millions of customers each month through approximately 15,000 service stations in the United States,” said
Mike Swillo, US Credit Card Operations Manager, from Shell. “When we consider new solutions and technology it has to have a clear business benefit, be customer-centric, and easy to implement. With no infrastructure investment, we are testing VTA as part of our proactive fraud prevention tool-set to better identify fraudulent card activity earlier in the transaction cycle, without inconveniencing our customers.”
Visa Transaction Advisor is available to merchants through participating U.S. acquirers. Visa has partnered with
- “Ease of implementation is a critical requirement whenever we’re talking about a new merchant service,” said
Donald Boeding, president of merchant services at Vantiv. “Visa Transaction Advisor builds on existing payment infrastructure, is easy to implement and flexible enough to allow customization by merchants, which is why we are excited to be the first acquirer to offer it to our oil merchants.”
Sandra Chu, +1 415-805-4124