Mastercard has announced a series of consumer protections aimed at protecting customers and merchants from fraud at fuel stations.
The New York payments-technology giant said fraud was up 17 percent at gas pumps through the end of last year through its EMV credit card terminals that allow chip cards and smart cards.
The enhanced consumer protection program was designed to provide merchants and banks with tools to help them navigate the heightened risk of fraud, Mastercard said.
“Many fuel companies have made the shift to a safer and more secure EMV environment, and we applaud them for doing so,” said Kush Saxena, Mastercard’s executive vice president, in a statement. “However, we also recognize and respect the complexities to upgrade to safer and more secure EMV transactions at fuel dispensers over the next few months.” He said the new program provides a new layer of protection to mitigate losses for all parties.
Banks that issue Mastercards will receive data on high-risk transactions to enable them to tailor their authorization decisions accordingly and prevent fraud before it occurs.
The company was not specific about the measures.
For owners who experience high fraud, Mastercard will provide additional details into the transactions and a more comprehensive view into the safety of the individual purchasing environments.
The company will also develop a compliance program for some fuel merchants who have experienced a high volume of fraud to ensure that they have a remediation plan in place to preempt fraudulent transactions at their locations, Mastercard said.
The payments network said merchants without EMV should upgrade their systems to help curtail counterfeit transactions in all countries and channels that have implemented the technology.
Between the end of 2015 and last year’s fourth quarter, merchants that have upgraded to EMV have decreased theft by 88 percent, Mastercard said.
Last week, PYMNTS reported that Mastercard vowed to connect one billion people and 50 micro-businesses to the digital economy by 2025 as the coronavirus pandemic continues to disrupt worldwide economies. In addition, the company said they will provide tools for 25 million female entrepreneurs to fuel business growth.