Digital Transactions Authoritative, insightful and timely information for payments professionals
Debit card issuers have a new tool to spot potential false transaction declines with a new service from processor Fiserv Inc., and the authentication needs of mobile payments are driving, in part, the growth in fingerprint sensors.
Brookfield, Wis.-based Fiserv says its new Authorization Lift service will help reduce the number of false declines for debit card transactions. It uses proprietary analytics to do this.
“The advanced analytics of Authorization Lift help ensure more genuine transactions are approved, so cardholders can avoid the frustration and embarrassment of a declined transaction,” said Patrick Davie, Fiserv vice president of product strategy for card services, in a statement.
Fiserv data suggests that 20% of cardholders stop using their cards after experiencing more than one false decline within a six-month period. Consumers also may spend less after having a false decline. Fiserv says the average monthly spending per card after two or more false declines decreases 15% on average over a six-month period following the most recent false decline.
In related fraud-prevention news, the market for fingerprint sensors used to authenticate mobile payments and for other applications, will rise from $2.91 billion in 2020 to $5.19 billion in 2026, for an 8.5% compound average growth rate, according to Valuates Reports.
In the short term, however, the Covid-19 pandemic may stunt fingerprint sensor growth, the research firm said.
