Visa Launches Smartphone Tracking to Reduce Declined Card Transactions

Visa Launches Smartphone Tracking to Reduce Declined Card Transactions

February 17, 2015         Written By Bill Hardekopf

If you have ever experienced the frustration of having your card declined while traveling, a new service from Visa may now help you avoid that problem. Visa’s Mobile Location Confirmation uses geolocation detection to cut unnecessary purchase declines by nearly 30%.

The new service from Visa will be implemented into pre-existing mobile applications for major financial institutions. As long as a person travels with his phone, Visa can verify that unexpected transactions in other countries are legitimate. The service works through the phone’s GPS to detect where a person is at any point in time, practically eliminating the potential for card declines while traveling.

“By matching the location of the cardholder through a cell phone or other mobile device, to the location of the purchase, Visa’s new service will enable banks to feel more confident about authorizing a transaction that might otherwise have been declined due to suspicion of fraud,” said Mark Nelsen, senior vice president of risk products and business intelligence for Visa, in a statement.

To enroll in the service, a user simply has to download the application for his financial institution corresponding to the Visa card. The app will ask to use mobile geolocation data as part of the installation. If a user confirms this, Visa will immediately go to work verifying charges and preventing unnecessary declines.

Of course, this raises some privacy concerns for a number of individuals since the phone, and therefore Visa, now know where you are at all times.

If you have a Visa credit card, ask your provider if this new service is available for you if you are interested.

The information contained within this article was accurate as of February 17, 2015. For up-to-date
information on any of the terms, cards or offers mentioned above, visit the issuer's website.


About Bill Hardekopf

Bill Hardekopf is the CEO of and covers the credit card industry from all perspectives. Bill has been involved with personal finance for over 15 years. He is a frequent contributor to Forbes, The Street and The Christian Science Monitor.
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