Fiserv launches pilot to better manage debit fraud risk
Fiserv Inc. is launching a program called Authorization Lift that will reduce the number of legitimate debit card transactions termed as fraudulent, while helping manage overall risk.
The program aims to help financial institutions increase card usage and enhance loyalty by making sure more legitimate card transactions are approved without problems, according to a press release.
"Issuers should not have to choose between declining legitimate purchases and potentially damaging cardholder relationships or approving borderline transactions and experiencing higher fraud losses," Patrick Davie, vice president, product strategy at Fiserv, said in the release. "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."
Island Federal Credit Union, a Hauppauge, N.Y.-based participant in a pilot program for Authorization Lift, said it saw approval rates increase 2.55% compared with a year ago, and approved transactions increased an average of $2,500 per day.
"For 65 years, the focus on our members' financial well being has led to strategic decisions that are always made in their long-term interests," Craig Booth, the credit union's senior vice president, technology and CIO, said in the release. "Fiserv has helped us balance robust security with a better cardholder experience, allowing us to continue to provide the first-rate service that Island Federal's members demand."
Island Federal has about 48,000 members and $1.5 billion in assets.