December 26, 2000, 9:55 AM

Visa shows there`s a silver lining on fraud

Don Davis

Editor in Chief

Visa U.S.A. plans to eliminate consumer liability for lost or stolen cards. The new rule revises a 1997 policy, which held consumers to a maximum liability of $50 if they reported lost or stolen cards in two business days. It expected issuers to begin complying with the change April 4. MasterCard International did not comment.

Visa also says its 1999 fraud loss dropped to 6 cents for every $100 in transactions, down from 7 cents in 1998. It credits neural networks to detect fraudulent cards, better fraud screens for Web merchants and cardholder verification codes.

Visa’s move will help boost consumer confidence and traffic for online shopping, experts say. But Edward Mierzwinski, consumer program director at the U.S. Public interest Research Group says enforceable rules are still needed. “It’s a step,” he says of the change. “But banks rarely charged the $50 anyway.”

Comments

Sign In to Make a Comment

Comments are moderated by Internet Retailer and can be removed.

Not a member? Signup for free today!

Advertisement

Advertisement

Advertisement

Relevant Commentary

FPO

Jason Squardo / Mobile Commerce

Five tips for achieving high mobile search rankings

Searches on mobile devices will soon exceed those on computers, Google says. Retailers that keep ...

FPO

Sergio Pereira / B2B E-Commerce

Quill turns to its B2B customers for new ideas

Coming in April is a new section of Quill.com that will let customers and Quill ...

Advertisement