Visa Mandates Alerts for Issuers by October
In the ongoing battle against fraud, Visa recently announced that Visa card-issuing credit unions will be required to provide member cardholders with the option of transaction alerts. The mandated deadline to be in compliance is October 14, 2016. On or before this date, credit unions must provide their Visa cardholders with the option to participate in the service.
Transaction alerts will work for transactions processed on a consumer card, excluding a non-reloadable card, and routed as follows:
● Visa Transactions routed through VisaNet
● Interlink transactions routed through the Interlink Network
● Plus transactions routed through the Plus Network
Transaction alerts have many benefits for issuers and cardholders. The overarching benefit is that the alerts help to reduce fraud. That’s good for you and your members. More specifically, transaction alerts provide peace of mind for members by putting them in control and they also help with financial management and budgeting. For credit unions, it is another fraud prevention service that you will be able to provide your members.
So what next? Issuers have some discretion in implementing the mandate. They will be required to tie in an alert service into their existing consumer credit, debit and reloadable prepaid accounts – and they can choose either to provide their own alerts service or to offer a solution from a third-party provider, like Cubus. Issuers can offer alerts via phone, SMS text or email, and they can even customize the messages.
A major consideration for issuers is the need to integrate the alerts service enrollment with their other services, which is a no-brainer if you already have Cubus products.
Branding, development and integration should be one of you concerns about which alerts offering you select. This mandate is actually an opportunity not just to engage cardholders in the fight against fraud, but also to provide a more comprehensive solution including – in addition to the alerts required by the mandate – those relating to account maintenance activity, personal information changes, suspicious transactions, payment due dates and available credit.
Empowering cardholders to play a more active role in transaction and account management is a winning move for all involved. And seizing the opportunity to provide the most comprehensive services to ensure the best member experience possible is something the entire industry can – and should – support with gusto.
If you don’t already have an alert system, call or email us today. We have a solution.