Visa Inc. now supports mobile geo-location technology to reduce transaction declines when consumers travel outside of their home area.
Visa Mobile Location Confirmation uses the geo-location information from cardholders' mobile phones to more reliably predict whether a particular transaction is legitimate, the card brand stated in a Feb. 12 press release.
The technology addresses the need for consumers to alert their banks that they are traveling to a location that is not part of their typical spending patterns.
Visa's new service will "enable banks to feel more confident about authorizing a transaction that might otherwise have been declined due to suspicion of fraud" said Mark Nelsen, senior vice president of risk products and business intelligence, in the release.
Cutting down on infrequent, unnecessary transaction declines will reduce lost sales for retailers and customer service costs for the banks. Visa estimates that financial institutions spend hundreds of millions of dollars annually to manage customer service calls related to pre-travel requests and to address declined transactions.
Participating banks will offer mobile location confirmation as an optional service through their mobile banking app. The service will be available in April, Visa said.
The geo-location technology is operated for Visa through partner Finsphere.