Visa Wants to Link Up Your Credit Card, Phone Location to Cut Fraud
NEWS ANALYSIS: Visa's new security procedure would link banking apps, location and credit cards to make sure it's really you that's charging your account.If you've done much traveling, then it's certainly happened to you. It's your first day in a new city and you present your credit card for payment and things grind to a halt. Depending on the circumstances, the transaction may require the clerk to check your identity, or it may require that you speak to someone at the credit card company so that you can confirm that it's really you that's buying lunch in London or Paris, or in my case in Frankfurt, Germany. And it might not even involve international travel. You might find yourself having to prove who you are in New York or San Francisco. What's happened here is that your purchase triggered the credit card company's fraud analysis system and they need to make sure that whatever it is that you're buying is a legitimate purchase. Normally such requirements for proof are simply annoying, but every so often they can lead to the denial of a charge, which can be a real problem. The security folks at Visa International think they've found a way to prevent this sort of inconvenience by tying the location of your phone to the location where your credit card is being used.
"This really ties into a lot of our core processing," said Visa's senior vice president of risk products and business intelligence Mark Nelsen. "Every time you use your Visa card we determine the likelihood of fraud." Nelsen said that Visa examines every charge that way. Of course so do other credit card companies including MasterCard and American Express. In fact, it was a purchase at the Frankfurt Airport several years ago that developed into my most recent call from American Express to confirm a charge.