December 29, 2017
The holidays are here, and it has been said that this is the most wonderful time of the year. Snow is falling, parties are on every weekend, families are reunited, and children are anxiously waiting to open their gifts. This season should be focused on reconnecting and experiencing the joy of the holidays, not worrying about credit card fraud.
Around this time, consumers face many card challenges when they shouldn’t have to. Traveling increases the chances of cards getting declined, and misplaced cards can get into the wrong hands. Last year’s holiday season alone saw a 31% in card fraud attempts. Stolen identities increase the chance for theft at online retailers, and spending limits can be difficult to maintain. These challenges can be avoided with one easy solution: mobile-based card controls provide a complete package to ensure holiday shopping is secure, within budget, and headache-free.
Card controls go beyond controlling who is spending. Location-based card controls enable peace of mind while traveling because the card can be used near one’s mobile phone, regardless of where they have traveled to. The consumer is the first line of defense with card controls, as they do not have to notify their financial institution because their location is verified through their smartphone app. The customer approves the transaction as opposed to the financial institution. This can also prevent fraud. If the card is lost or stolen, it can be turned off on a mobile device or can be enabled to only work in proximity to the phone.
Online shopping is the fastest growing channel for holiday shopping, which means lots of potential for fraud. According to the U.S. Payments Forum, CNP fraud is currently the most common type of fraud around the world, especially in countries that have migrated to EMV. This means that even chip cards can cause an issue, and there needs to be another form of protection from credit card fraud. Mobile-based card controls can be set to either turn online purchases completely off or require a confirmation for every transaction (or for transactions that trigger certain flags). Using these controls, if the card is not present, there is still security on the use of the card.
The limits one can set with card controls are what draw customers to using these cards with these capabilities. The customer can set the location to be used only within a certain range of miles at certain types of stores. For example, employees with the company card may only use the card on the route to their client’s location or only at specific places like gas stations and grocery stores. Companies like Navy Federal Credit Union, Tech CU, HSBC, and Ally have switched to mobile card controls. The customization options are endless, and the location-based controls, along with the comfort of knowing they are preventing fraud, will draw customers to financial institutions with these card capabilities.
Now that location-based controls are in check, you’re ideally able to spend as you please. But what if you spend more than your limit allows, or your teenager takes the power to purchase gifts into their own hands?
Mobile-based card controls allow the cardholder to have complete control over their finances. Spending limits can be raised or lowered, depending on need. Teenagers given the freedom to holiday shop can be limited to only purchase within their budget, and the cardholder can set spending location parameter. For your own personal budgeting, you can use card controls to set limits on your own monthly budget. A strict budget and the ability to keep track of spending will help ease the stress of holiday shopping. Setting limits allows consumers to maintain a budget for their holiday shopping.
With the holiday season in full-swing, it is easy to get caught up in the spending and ignore the possibility of card fraud and location-based credit card denial. Using mobile-based card controls is an easy way to stay on top of your spending and keep the focus on a joyful season.