Effective October 24, 2016, any bank that issues a Visa-branded card must give cardholders the option to register for alerts related to any transaction processed by Visa.
PYMNTS.com provides us with a full run down of the recent announcement.
The Purchase Alert Mandate Nuts & Bolts
The purchase alert program is aimed at helping cardholders become more proactive in their purchases.
While issuers are required to make this alert service available, it will still be up to cardholders to opt-in to receive them.
Issuers may develop their own purchase alert solution using the network-branded solution, or use a third party to provide the service on their behalf.
Keeping Fraud in Check
One of the biggest draws to transaction alerts is the ability to curtail fraud in its tracks. A Visa study found that cardholders that subscribed to alerts experience 40% less fraud.
Cardholders knowing that there is increased security due to the alerts put in place surrounding their transactions can also feel better about using those cards.
The Transaction Alert Roadmap
For consumers who choose to opt-in, a great deal of value is seen in alerts related to location and being able to know when card transactions are being made where they are not. Also, with the migration of fraud to online channels as a result of EMV, cardholders are also turning to alerts to keep them informed about eCommerce purchases.
We think the Purchase Alert Program is very necessary. Not only does this program help customers fight fraud, it also helps issuers build relationships with their customers due to increased satisfaction and security.
At Total-Apps, our dedicated account managers scan merchant accounts for fraudulent transactions every day. If there is a questionable transaction, you are notified immediately about the status of your account.
Fraud is a huge issue in the US and it is always good news to learn about new programs like EMV and Purchase Alerts that help merchants and cardholders fight fraud.