Fraud News

The Dangers of False Credit Card Fraud Triggers


Ensuring travelers are not needlessly rejected for legitimate payments.

It’s an all too common and highly embarrassing problem for corporate travelers: a credit card transaction is rejected during a business trip and the card is locked. They are then faced with hours of time clearing their name and reactivating their card.

Protecting customers from fraud is our utmost priority. But if your tools leave you blocking legitimate business, you risk driving away good customers. What’s an issuer to do?

One Chance to Dissatisfy a Customer

Despite the increasing sophistication of software to combat fraud, there remain many legitimate transactions that trigger fraud warnings. While rejecting the transaction and blocking the card is of overall benefit to customers, the risk is that lucrative business travelers can be caught up because their travel or other factors may signal a false positive for fraud.

Unfortunately, if this happens, the likely first response is that the cardholder will resort to another card to cover the bill if they can. From there, that secondary card probably takes top-of-wallet status for the rest of the trip, and can likely stay there. After all, regaining consumer confidence in a card that has the potential to humiliate them is no easy task – that customer may be lost forever.

There must be better ways to reduce and even eradicate these triggers.

Location Matters

Developments in technology and networking are providing mechanisms that offer valuable tools to help credit card fraud systems better differentiate between legitimate and illegitimate transactions.

The long-established method has required travelers to call their banks and tell them where and when they’ll be traveling so credit card payment…

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