12 marzo 2015

Visa wants to track your smartphone to prevent credit card fraud

Visa is offering location tracking to its banking partners, which will verify your location on your smartphone whenever your card is swiped. If the locations don’t match up, it doesn’t mean the transaction will be automatically declined – sometimes your phone’s battery goes dead or you leave it in the hotel room — but Visa uses it as an additional input for its fraud detection algorithm. And if it does get a location match, then there’s far smaller chance the bank will decline a legitimate transaction even if otherwise looks suspicious. Visa estimates it can reduce such mistakenly declined transactions by 30 percent with the new tech.



So how does Visa get in your phone? It’s working with card-issuing banks to embed a location-tracking module into their regular banking apps. Whenever the card is swiped, Visa partner Finsphere, a geospatial analytics company, pings the app for a coordinates and then reports its findings to Visa in real time (Visa says the process takes less than a millisecond). The feature will be available to banks in April.