Credit cards have become indispensable to both consumers and businesses in expediting the payment process; but when disputes arise, the system can break down into acrimony and injustice, especially when intentional fraud is committed. What programmes are card schemes Visa and Mastercard implementing to streamline the current chargeback system, settle disputes quickly and efficiently, and to protect the innocent? The new Open World model provides some answers.
As consumers become more aware — and less tolerant —of payment fraud, more needs to be done to win their trust in digital transactions.
Digitisation is driving unions across the financial world, and especially in the payments industry. Mastercard’s pioneering acquisition of the UK bank-account-based payments system Vocalink sets a precedent for such mergers all around the globe, in large measure due to the growing influence of the world’s first truly digital generation, the Millennials, who demand instant transactions in real-time.
Millennials are changing banks from the inside out, causing them to reduce their dependence on the product-centric, transactional model that has been the standby of banking business for decades. Instead, banks are having to creatively cultivate one of their main advantages, their large customer bases, to develop adapted digital models that promote the bank’s role as advisor throughout their customers’ financial lifecycles.
“Plan for radical change, or prepare for obsolescence” was the recent message from former Apple CEO John Sculley in reference to the banking sector’s latest digital innovation: the chatbot. As part of the ongoing fintech revolution, mobile-messaging applications are now being adopted around the world at an astronomical rate.
An entire industry – card payments acquiring and processing – relies its risk management methodology on chargebacks optimization as its main, if not sole, operational target.