Visa Warns of Dishonest ‘Cashless ATM’ Schemes

Visa Warns of Dishonest 'Cashless ATM' Schemes

Visa has warned of a new scheme where point of service (POS) devices being dishonestly pushed as “cashless ATMs” are being put out at various merchants, a Dec. 2 press release says.

Cashless ATMs are POS devices driven by payment applications to mimic standalone ATMs. Usually, there are no cash disbursements made to cardholders; instead, the devices work for purchase transactions, which can be mistaken for ATM cash disbursements due to the way they appear on Visa’s Plus network.

The release from Visa says the cashless ATMs are often marketed to merchants not able to obtain payment services for various reasons. Because of that, the scheme Visa is warning about, where the devices are misrepresented, could affect its integrity.

The release says transactions should adhere to a set of stipulations of how they can be used, such as to dispense cash in a local currency or to make a travelers cheque.

As such, the acquirer has to make sure all the Visa and Plus Network transactions contain complete and accurate data.

Visa has recently partnered with the International Air Transport Association’s (IATA) Financial Gateway (IFG) in order to help streamline the payments for flights.

Read more: Visa’s Cybersource Joins IATA to Streamline Airline Payments

Using its global payment and fraud management platform Cybersource, Visa is working with IFG to help fight fraud and keep revenue high.

The move has been touted as a way to get things back in-line with how they were before the pandemic, while also keeping things safe and private in every respect.

Additionally, Cybersource also helps airlines save time when moving into new regions, integrating new payment options or sales channels. There will be an effort to help airlines access more of a unified omnichannel experience to meet demands.

Last month, Cybersource Vice President Fernando Souza said airlines “need to support domestic and cross-border travel, while containing costs and mitigating fraud.”

“Cybersource’s platform provides tools and resources to ensure airlines can provide a smooth and secure experience for customers, while maintaining profitability,” Souza said.