MasterCard Continues Security Push with Global Rollout of Zero Liability (Nov. 11, 2015)
As part of a recent push toward enhancing cardholder security, MasterCard is extending its updated Zero Liability policy to cardholders across the globe. The policy protects holders of personal and small business MasterCard-, Maestro- and Cirrus-branded credit, debit and prepaid cards from being held liable for unauthorized transactions, provided the cardholder exercises “reasonable care” in safeguarding the card and reports any loss or theft promptly to the issuing bank. The policy applies to all transaction types, including signature and PIN-based POS transactions, ATM withdrawals, and online and mobile transactions. Previously, Zero Liability protection only applied to signature POS transactions in certain regions. MasterCard updated the policy to cover all transaction types for U.S. cardholders last year, and now is expanding it, with full global rollout expected by early in the second quarter of 2016.
For MasterCard, scaling the updated policy globally is an important part of ensuring cardholders are protected—wherever they are—at a time of increasingly global commerce and enhanced fraud risk. “The marketplace has changed dramatically since many of our fraud policies were put in place in the early to mid-’90s,” Nancy O’Malley, MasterCard’s chief payment system integrity officer, tells Pay News. “Consumers are more mobile and are transacting around the world—both in person and online—so putting in place one modernized policy for all regions is keeping in pace with the market.”
MasterCard’s issuing partners have been “tremendously supportive” of the Zero Liability policy, says O’Malley, noting that issuers are on the front lines of dealing with cardholders who’ve been affected by fraud. “When a customer is the victim of fraud, it’s a moment of truth for that issuer; the customer wants to know the issuer is their ally in getting the problem solved.” Successfully doing so is an opportunity for issuers to win loyalty and bolster their relationships with customers, she adds.
The Zero Liability policy is part of the “holistic program” MasterCard is using to protect cardholders, working in tandem with other security measures in a multilayered security approach, O’Malley continues. Last month, the network announced it would integrate tokenization into its MasterPass digital service to increase security for online transactions beginning next year. MasterCard has also deployed Safety Net, a global tool that helps banks and processors identify cyberattacks. And in February, the company announced plans to invest more than $20 million in cybersecurity-related technology enhancements.