New Visa Service Helps Gas Stations Combat Credit Card Fraud
Visa is helping gas stations fight credit card fraud through a new program known as the Visa Transaction Advisor. This system uses intelligent analytics to identify purchases that have a high risk of being fraudulent.
Self-serve gas stations are known targets for credit card fraud because they involve credit card transactions away from the merchant’s view. People can swipe cards and fill up their cars without ever being asked for an ID. With the Visa Transaction Advisor, the chance of a fraudulent charge happening is greatly reduced, protecting both the gas station and the customer.
Once a cardholder inserts the card at the pump, the Visa Transaction Advisor creates a risk score for that transaction by analyzing a number of factors, such as past transactions, whether the account has been involved in a data compromise and nearly 500 other pieces of data. Merchants can identify those transactions with a higher risk of fraud and perform further cardholder authentication before gas is pumped.
Visa’s fraud rates are already at near historic lows, with only 6 cents out of every $100 spent on Visa cards being the result of fraud. Nevertheless, pilot tests for VTA showed there was a 23% reduction in fraud thanks to this service. Best of all, the Visa Transaction Advisor does not require any costly upgrades to the infrastructure of credit card processors, and it does not seem to disturb a regular customer’s transactions.
“Visa Transaction Advisor uses sophisticated analytics based on the breadth and scale of VisaNet data to flag the riskiest transactions,” said Mark Nelsen, Vice President of Risk Products and Business Intelligence for Visa. “By working with fuel companies to understand their needs, we were able to create a new service that builds on Visa’s predictive analytics capabilities, providing fuel merchants with more intelligence to prevent fraud and improve their bottom line.”