Visa Trumpets Success of Gas Station Anti-Fraud Technology
Gasoline sellers that use a Visa fraud-reduction tool have experienced significant declines in chargebacks and other fraud metrics, the payments network said today. On average, gas stations that use the service experienced a 54 percent decline in counterfeit fraud rates and a 51 percent decline in lost and stolen fraud chargeback rates.
Visa Transaction Advisor, used in approximately 35,000 U.S. gas stations, “analyzes multiple data sets such as past transactions, whether the account has been involved in a data compromise, and nearly 500 other pieces of data to create a risk score within milliseconds,” Visa said. The technology helps protect transactions conducted at outdoor pumps, which are targets for criminals. While EMV chip cards are spreading through the country, many gas pumps lack the technology—the liability shift for gas pumps doesn’t go into effect until October 2017—which creates demand for other anti-fraud measures, Visa said. Blocking fraudulent transactions at the pump makes fraud less likely for fuel sellers, as few criminals are probably going to go inside to purchase gas from station clerks.
Fuel merchants praised the program. “[Visa Transaction Advisor] seamlessly integrates with our other risk management strategies and provides added protection for merchants without inconveniencing our customers,” noted Mike Swillo, U.S. credit card operations manager at Shell.