Thursday, February 27, 2014
Visa Inc. has created a clearinghouse for the sharing of fraud information as it concerns prepaid cards. The goal of the Prepaid Clearinghouse Service is for the industry to more effectively detect and prevent fraud schemes that target prepaid cards.
PCS operates as a centralized database that allows financial institutions, processors and prepaid program managers to share prepaid card data, such as enrollment numbers, the amount of money loaded on the cards, suspected fraudulent activity iand previously reported fraud on existing card accounts.
"Criminals are increasingly targeting prepaid products which more and more consumers are using for every day purchases," said Brian Triplett, Senior Vice President, Head of North America Prepaid Products at Visa. "While existing laws and industry safeguards help limit most consumer losses, PCS is a huge step forward for the industry towards proactively preventing fraud schemes targeting prepaid cards."
Prepaid card service providers will be able to access PCS on a subscription basis and receive real-time alerts about fraud trends and other topics. "By participating in Prepaid Clearinghouse Service, participants will have access to a holistic view of prepaid fraud across the industry, enabling them to detect and protect their customers and their portfolios from fraud efficiently and effectively," Visa said.
The PCS is based on Visa's Issuers' Clearinghouse Service, where Visa issuers submit information on both fraudulent applications and consumer credit card applications employed for the application and underwriting process. All financial institutions that issue Visa-branded prepaid cards, as well as program managers for Visa-branded prepaid services, will be required to report prepaid fraud data to the PCS. Visa has given its partners until June 2015 to comply.
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