Mastercard Announces Consumer Protection Measures at The Pump

Mastercard Announces Consumer Protection Measures at The Pump
19.05.2020 06:34 am

Mastercard Announces Consumer Protection Measures at The Pump

Securities Services , Payments

Mastercard announced a new consumer protection program to address the fraud vulnerabilities that exist today at fuel merchants who have not completed the upgrade to safer and more secure EMV terminals. This new program has been put in place as the company shifts the EMV Automatic Fuel Dispenser (AFD) liability date to April 16, 2021 to support fuel merchants still completing upgrades.

Fraud has been migrating to AFDs at an accelerated pace, with 17 percent of all US card present fraud losses reported to Mastercard occurring through transactions at these merchants as of Q4 2019. This creates pain for the entire ecosystem, especially for consumers. The enhanced consumer protection program provides the merchant and issuing community with tools to help them navigate the heightened risk fraud is presenting.

“Many fuel companies have made the shift to a safer and more secure EMV environment, and we applaud them for doing so. 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,” said Kush Saxena, executive vice president, US Merchants and Acceptance, Mastercard. “The new program we are putting into the market provides a new and differentiated layer of protection, thus securing consumers and mitigating losses for all parties.”

Protecting Cardholders at the Pump

Mastercard issuing banks will be provided with enhanced data on high-risk fraud transactions at fuel merchants to inform their authorization decisions and stop fraud before it happens. The company’s Safety Net and Fraud Rules Manager programs will be enhanced to aid them in their decision-making criteria, providing additional protection for their cardholders at fuel pumps.

Mastercard will arm fuel merchants who experience high fraud with the company’s Merchant Fraud Insights to provide additional details into the fraudulent transactions and a more comprehensive view into the safety of the purchasing environment at their individual locations.

The company will also develop a compliance program for some fuel merchants who have experienced high fraud at their locations to ensure they have a remediation plan in place to preempt and mitigate fraudulent transactions at their locations. Additionally, Mastercard will continue to advise those merchants on the importance of upgrading to EMV terminals to further secure the entire ecosystem, thereby minimizing risk to consumers.

Mastercard is focused on maintaining the integrity of the payments system, while also supporting issuers and merchants to keep consumers protected. The upgrade to EMV remains paramount and has helped curtail counterfeit fraud in all countries and channels that have implemented the technology. In the US, between Q4 2015 and Q4 2019, counterfeit fraud basis points at merchants who have upgraded to EMV have decreased by 88 percent proving the ability to fight fraud and protect businesses and consumers.

Related News

Huobi Tech’s (1611.HK) Asset Management Subsidiary obtained SFC Type 4 and Type 9 licenses

Huobi Asset Management (Hong Kong) Limited (the “Company”), the wholly-owned asset management subsidiary of Huobi Technology Holdings Limited (1611.HK), is... Read more »

IHS Markit Adds Credit Benchmark Consensus Analytics to Securities Finance Platform

IHS Markit, a world leader in critical information, analytics and solutions, today announced a collaboration with Credit Benchmark in which it will use Credit Benchmark’s... Read more »

Income and Wealth not the Driver for Prosperity in High-Growth Markets, Finds New Global Study

Three quarters of people with a below-average income for their country report feeling prosperous; Six in ten people across high-growth markets say access to financial services... Read more »

SWIFT enhances connectivity to VPS, the Norwegian Central Securities Depository

SWIFT will reinforce its connectivity to Verdipapirsentralen ASA (VPS), Norway’s central securities depository (CSD), which could make a shift in transaction volume to SwiftNet... Read more »

BNP Paribas Securities Services and Tata Consultancy Services Partner to Transform Asset Servicing Industry Using Blockchain Technology

BNP Paribas Securities Services teams up with Tata Consultancy Services (TCS) to deliver an innovative blockchain-based platform, called Corporate Event Connect, which... Read more »

Magazine
ALL
Free Newsletter Sign-up
+44 (0) 208 819 32 53 +44 (0) 173 261 71 47
Download Our Mobile App
Financial It Youtube channel