Credit Card Companies Elevate Fraud Solutions

Visa and MasterCard are teaming up with wireless carriers like AT&T to cut down the average resolution time for fraud transaction claims.

Using the GPS location of a card user, the credit card companies are testing methods that would readily solve cases where the cardholder was far from the site of fraud transaction, according to techinsider.net

But tracking of cardholders doesn’t always lead to a black and white situation. In cases, where the burglar and cardholder are at the same location, GPS information from the wireless carrier is of little to no use. Nonetheless, it would save the credit card company a lot of money spent on resolving fraud claim charges.

Though it might be a win-win situation for honest credit cardholders and issuing companies, the wireless carriers are working on cutting a profit out of providing such valuable information. Wireless carriers might charge about 10 cents for providing location information per transaction, Crayton Harrison of Bloomberg reported this morning.

Giving out personal location to the credit card company would however remain a customers’ choice, with a free option to say no.

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