Visa USA Adds Another Layer of Technology

Thursday 21 April 2005 10:09 CET | News

Visa USA has added a new layer of technology to help its Member financial institutions reduce application fraud losses and account takeover fraud.

The new fraud fighting effort is being developed through an association with Chex Systems, Inc., a wholly owned subsidiary of eFunds Corporation, and will only be available through Visa to its card-issuing Members. Visa is offering this service with eFunds to provide Members an innovative tool to fight fraudulent consumer card applications and change of address- based identity theft. Specifically, issuers will screen their Visa debit and credit card applications and change of address requests against an enhanced database to verify a range of information variables such as address, phone numbers, bankruptcy information, and now related checking account fraud from eFunds. In a recent study with three U.S. member financial institutions, the new service could have prevented an estimated 23.5 percent of their total fraud and charge-off losses. This improvement was above and beyond existing fraud and risk management solutions in place at the time of origination. The addition of checking account industry fraud data on balance provided in this study a nearly 50 percent increase in detection performance. Furthermore, based on this study, it is anticipated that a net benefit of up to $500 can be realized for every $1.00 in alert expense. This new service joins the Issuers Clearinghouse Service (ICS), an application verification database populated with Visa and MasterCard application and fraud data, in the fight against fraud and is only available from Visa and its exclusive partnership with eFunds. Full availability of this application risk tool is planned for third quarter 2005.

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Categories: Payments & Commerce | Payments General
Countries: World
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