In a bid to check the rising incidents of credit card fraud, the payment processing and credit card giant Visa is going to launch a new application that will allow the users to access a tool that would enable the mobile geo-location use which will clearly differentiate between an authenticate transaction and a suspicious one.
Visa’s new feature has been named Mobile Location Confirmation, also known as MLC.
According to the company, the service will be matching up the smartphones’ coordinates with the location of the sale as well as the suspected case, which will help in predicting credit card fraud easily.
The case of fraud of debit and credit card claims a loss of billions of dollars to the consumers and banks each year. Unfortunately, the figure has been continuously growing with the data breaches.
In the years 2012 and 2013, the banking industry of the United States reported USD 4 billion and USD 1.57 billion in credit card fraud respectively.
According to the company, the banks will be updating their smartphone applications in order to incorporate the latest location-tracking software by Visa.
If the consumer opts for the new software, it will establish a home territory of the customer of nearly a 50-mile radius. If the customer uses the Visa credit or debit card in that established area, those transactions will be considered of lower risk or no risk for fraud.
If the customer travels outside the specified home location, Visa will be notified about the new location via smartphone. And if the transaction is made in that new location, it would be considered to be a low risk one as Visa already has the information that the customer has shifted to a new location.
The new feature is absolutely optional for the customers and they can opt for deactivation at any point of time.
Visa has claimed that the company will not be using any location tracking for marketing purposes.