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Visa (V) Updates Dispute Rules to Fight Friendly Fraud Losses
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Visa Inc. (V - Free Report) provided an update to its dispute program for first-party fraud or friendly fraud, for card-not-present transactions. The move is expected to help merchants fight first-party misuse, saving small businesses more than billions in losses worldwide in the next half a decade. The improvement is expected to benefit the consumer-merchant ecosystem.
In current market conditions, small businesses are fighting hard for their margins. As such, the rule change is expected to provide them some impetus, helping them keep their rightfully earned money. With rising digital transactions over the past few years, fraud activities have dramatically surged. First-party misuse is just one universe in the multiverse of fraud activities.
The move highlights Visa’s focus on minimizing the impact of fraud and protecting consumers and merchants. The company’s investments in ensuring the security of payment solutions are enabling it to advance its digital platform. This has been spotlighted by the company in multiple instances over the past few months as the regulators and legislators have been talking about increasing competition in the payment space (Credit Card Competition Act bill).
Visa and Mastercard Incorporated (MA - Free Report) are right at the center of this debate. The primary argument against increasing competition has been that it can affect the level of security. The supply of better and more effective security technologies and related R&D comes with expensive price tags, which will likely be difficult for smaller rivals to cough up right from the beginning.
There are other competitors in the payments space providing digital banking products and credit payment services, including American Express Company (AXP - Free Report) and Discover Financial Services (DFS - Free Report) , with comparatively lower market share. These companies provide their respective unique financial products to capture market share.
American Express offers lines of credit to small businesses and invests in technological improvements to bring in more customers and boost volumes. Discover Financial uses in-house resources and third-party vendors to pursue technology advancements. It is witnessing volume growth in its Payment Services business, which is supporting its results.
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Visa (V) Updates Dispute Rules to Fight Friendly Fraud Losses
Visa Inc. (V - Free Report) provided an update to its dispute program for first-party fraud or friendly fraud, for card-not-present transactions. The move is expected to help merchants fight first-party misuse, saving small businesses more than billions in losses worldwide in the next half a decade. The improvement is expected to benefit the consumer-merchant ecosystem.
In current market conditions, small businesses are fighting hard for their margins. As such, the rule change is expected to provide them some impetus, helping them keep their rightfully earned money. With rising digital transactions over the past few years, fraud activities have dramatically surged. First-party misuse is just one universe in the multiverse of fraud activities.
The move highlights Visa’s focus on minimizing the impact of fraud and protecting consumers and merchants. The company’s investments in ensuring the security of payment solutions are enabling it to advance its digital platform. This has been spotlighted by the company in multiple instances over the past few months as the regulators and legislators have been talking about increasing competition in the payment space (Credit Card Competition Act bill).
Visa and Mastercard Incorporated (MA - Free Report) are right at the center of this debate. The primary argument against increasing competition has been that it can affect the level of security. The supply of better and more effective security technologies and related R&D comes with expensive price tags, which will likely be difficult for smaller rivals to cough up right from the beginning.
There are other competitors in the payments space providing digital banking products and credit payment services, including American Express Company (AXP - Free Report) and Discover Financial Services (DFS - Free Report) , with comparatively lower market share. These companies provide their respective unique financial products to capture market share.
American Express offers lines of credit to small businesses and invests in technological improvements to bring in more customers and boost volumes. Discover Financial uses in-house resources and third-party vendors to pursue technology advancements. It is witnessing volume growth in its Payment Services business, which is supporting its results.