PURCHASE, New York—To address what has become a growing inconvenience—cardholders attempting to make a purchase in a different city only to have their credit card falsely declined—MasterCard said it is working to reduce that aggravation while also keeping a lid on fraud.
MasterCard said it has invested millions of dollars in a new program called MasterCard IQ, and worldwide communication network has helped to decrease false declines by 25%, reported LowCards.com.
“The plan is to use data collected by retailers and smartphone companies to monitor your location and verify you are where your card is being used. Rather than calling your card provider to let them know you are traveling, you can simply use your card as normal and let MasterCard's intelligence do the rest,” said Bill Hardekopf, CEO of LowCards.com, Birmingham, Ala.
Some consumers may be concerned about the process because it essentially means they are being tracked. However, the data MasterCard is tapping into is no different than the data that is already collected each and every day by retailers, said Hardekopf.
“Any time you verify that a website or smartphone app can track your actions for better security, you open the door for them to monitor your location. MasterCard is using this as a tool to improve your shopping experience,” said Hardekopf.
MasterCard has already made arrangements with more than 3,000 retailers to gather information to be used in MasterCard IQ, allowing the company to make a better decision about declining an unusual charge on an account.
“While the industry has relentlessly worked to reduce fraud, some of these efforts have resulted in an increase in transactions being needlessly declined,” said Ajay Bhalla, president of enterprise security solutions, MasterCard. “Nobody likes being falsely accused of something. Our IQ products leverage technology and insights to deliver merchants and consumers a convenient, uninterrupted checkout experience.”