Unfortunately for financial institutions and their cardholders, false declines are a serious issue. However the authorization Lift from Fiserv will help financial institutions lower fraud mitigation with the experiences consumers expect.
Authorization Lift’s new technologies and financial expertise analytics will reduce false declines and increase profitability and portfolio growth. Better authentication and authorization strategies will now be used as well as intelligent cardholder notifications so that the focus will be on revenue growth and consumer satisfaction.
Users of debit cards now have a new tool so that they can spot potential false transaction declines with the new Fiserv service. This authentication of mobile payments is driving the growth and technology in fingerprint sensors.
Brookfield, Wis.-based Fiserv explained the new Authorization Lift service will help lower the amount of false declines for debit card transactions by using proprietary analytics to do so.
Patrick Davie, Fiserv vice president of product strategy for card services said in a statement “The advanced analytics of Authorization Lift help ensure more genuine transactions are approved, so cardholders can avoid the frustration and embarrassment of a declined transaction… Issuers should not have to choose between declining legitimate purchases and potentially damaging cardholder relationships or approving borderline transactions and experiencing higher fraud losses,”
Fiserv data has shown that 20% of cardholders will stop using the cards they own after experiencing several different declines in a six-month time span. The data had also found that consumers tend to also spend less after they had a false decline. Fiserv stated that the usual monthly amount that is spent per card after there has been two or more false declines goes down 15% on average throughout a six-month timeframe after the most recent false decline.
Also in relation to fraud-prevention news, the current market for fingerprint sensors that are used to authenticate mobile payments and for various other applications, will go up where it currently stands at $2.91 billion in 2020 to $5.19 billion by 2026. This makes it a 8.5% compound average growth rate, in accordance to Valuates Reports.
Unfortunately, due to the current Covid-19 pandemic, the short term may significantly slow down fingerprint sensor growth, the research firm added.
New Fiserv research has found new technology that is able to target debit card false declines.
Author Bio: Blair Thomas has been a music producer, bouncer, screenwriter and for over a decade has been the proud Co-Founder of eMerchantBroker, the highest rated chargeback insurance in the country. He has climbed in the Himalayas, survived a hurricane, and lived on a gold mine in the Yukon. He currently calls Thailand his home with a lifetime collection of his favorite books.