One of the best parts of Apple Pay, one of many, is the security that’s inherently instilled with the mobile payments solution, thanks to not only the implementation of the mobile payments solution, but also Touch ID.While Apple Pay is seeing plenty of adoption since its launch, there are still many reasons to carry a physical card, especially while traveling internationally. As a result, credit and card fraud is still something that happens, and it’s this sort of thing that Visa would like to clamp down on. Thanks to Mobile Location Confirmation, Visa is hoping that by tracking a smartphone this could help their security systems prevent any fraudulent charges.
Visa also hopes that it works in favor of those who haven’t had their cards stolen, either. In essence, Visa’s Mobile Location Confirmation, and tracking a smartphone, just because you use your card in England won’t mean the card gets denied outright, because the system can track that you’re also located in England as well.
“While infrequent, unnecessary transaction declines can mean lost sales for retailers, additional customer service costs for financial institutions and, ultimately, frustration for the cardholder if unable to make a purchase when travelingâ€¦ By providing financial institutions greater intelligence when approving transactions, Visa expects to reduce such declines by as much as 30 percent, impacting millions of transactions annually and improving the experience for cardholders, merchants and financial institutions.“
When Visa does roll this new feature out, it’s going to be opt-in, and banks will have to ask if you want to actually enroll into the program. If you decide not to, well, Visa won’t track you.
Interestingly enough, with Apple Pay a big part of Visa’s future, it will be interesting to see how this system works in conjunction with Apple’s mobile payments system.