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150m Reasons to Stop Fraud @ Checkout

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Security is a big deal for us consumers. That’s why we invest in gate men and guards for our homes and expensive anti-virus software for our PCs.

Despite that, how many of us have actually paused to consider what happens after we pay with our credit or debit cards at the checkout? Where does our information go to? Or, who is protecting it? In just a few short seconds after handing over our card, we’ve paid and gone on our way, with little thought to the process that takes place behind the scenes.

Behind each transaction is actually a carefully orchestrated process. When a Visa cardholder uses a card to buy a pair of shoes, it’s actually the acquirer — the merchant’s bank — that pays the merchant for the shoes.

Then, the issuer — the cardholder’s bank — reimburses the acquirer, usually within 24 to 48 hours. Last, the issuer collects from the cardholder by withdrawing funds from the cardholder’s bank account if a debit account is used, or through billing if a credit account is used.

With all the linkages and players involved, you might wonder about the security of it all. How does the system detect that it’s really you, the genuine cardholder, who is making the purchase? What happens if you lose your card? Will a thief be able to conduct a fraudulent transaction using your information with the same ease and speed?

The Art Of Fraud Prediction

The next time you pay with your card, pause and consider how your bank decides whether or not to authorize your request.

All transactions must go through a payments processing network such as VisaNet, a robust and secure system that ensures that your payments are not just fast and reliable, but safe too.

Sophisticated risk management services within the payments network ensure that every player in the payments ecosystem is protected – from cardholders like you, to merchants and banks – from losses due to fraud, theft, or unauthorized use of debit, credit and prepaid cards.

Chances are your bank depends on risk management services such as Visa Advanced Authorization that monitor transactions, detect any unusual spending patterns and flag possible fraud – all in real-time.

The payments network analyzes thousands of examples of valid purchase transactions and constantly updates account transaction patterns so that future purchases can be evaluated against the most current information.

So for example, if you only ever use your card to purchase online music, a transaction for an expensive widescreen HD television, perhaps in another country, would be identified by the payments system as unusual.

A rating of that transaction’s potential for fraud is then sent to the card issuer, your bank, including information on whether it was part of a reported third-party data security compromise.

With this information on hand, your bank can respond immediately to the merchant on whether to accept or decline the transaction.

If suspicious, your financial institution may choose to temporarily put charges on hold, notifying you as soon as possible to verify the legitimacy of the charges.

This is important, because the ability to analyze transactions in real-time helps stop fraud at the checkout – even before it takes place!

At Visa, the reliability and security of every one of the 150 million transactions we process each day lies with VisaNet, the world’s largest retail electronic payments processing network.

Every day, VisaNet connects up to 2.1 billion cards, millions of acceptance locations, 2.0 million ATMs and 14,800 financial institutions.

This translates to more than US$6.5 trillion in global consumer spend on our products every year.

That’s a huge responsibility on our shoulders, and we know we can never take this trust for granted.

Criminals and fraudsters never stop. They are smart, nimble and determined – moving quickly to take advantage of new opportunities to perpetuate fraud.

This is why we have invested heavily in new technologies and innovations – from encryption of data to chip technologies – to make sure we are always one step ahead.

Ours is a system that is consistently and constantly upgraded to provide new services, enhancements and capabilities that consumers expect.

Visa also collaborates with the broader payment community on innovative data security techniques, authentication solutions and technologies and fraud prevention strategies to keep payments safe.

This is why over the past five years, even as global transaction volume has increased dramatically, global fraud rates have remained near historic lows.

So the next time you see the word ‘approved’ appear on the Visa card terminal in front of you, you know that your payment has been made not just successfully, but securely too.

 


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E-Financial

Lagos State Appoints MoneyMaster as Payment Partner for “Ounje Eko” Programme

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“Ounje Eko”, the food price discount initiative of the Lagos State Government, has appointed leading payment service bank, MoneyMaster Payment Service Bank Limited (MMPSB), as its collaborator in the bid to ensure ease of payments at the market.

MoneyMaster is one of the Central Bank of Nigeria-licensed Payment Service Banks (PSBs) to promote financial inclusion across Nigeria.

Under the partnership, MMPSB will apply its cutting-edge payment solution to engender easy payment and reconciliation in order to make   the experiences of Lagosians who will be getting their food supplies from the markets pleasurable. Its payment solution is also all-encompassing and ensures real time value to payment destinations.

The mobile bank was appointed as the collection and payment partner for “Ounje Eko” Food Markets programme which is a government initiative serving the five divisions of Lagos State. Consequent on this, MoneyMaster Payment Service Bank will collect payments in 57 LCDAs in the state.

The partnership gives credence to the quality of payment solutions that MoneyMaster is reputed for in its services to its growing business clientele in private and public sectors.

 


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E-Financial

CBN, EFCC Probe Banks, Firms over Alleged Forex Racketeering

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Central Bank of Nigeria (CBN), is investigating irregular foreign exchange transactions and forward contracts valued at approximately $2.4 billion.

CBN, EFCC Probe Banks, Firms over Alleged Forex Racketeering

The  inquiry follows an extensive audit by Deloitte, which scrutinized $7 billion in dollar debts accumulated under the bank’s previous leadership.

In the aftermath of the 294th Monetary Policy Committee meeting in Abuja, Yemi Cardoso, governor of CBN,  disclosed to journalists that the investigation, supported by the Economic and Financial Crimes Commission, among other security bodies, aims to clarify the legitimacy of these FX allocations identified as problematic by the audit.

“It was determined that a number of these transactions did not qualify…they were outright illegal. The law enforcement agencies are now looking into those transactions that as far as we are concerned, are not valid to be paid,” Cardoso detailed, emphasizing the unlawful nature of these forex deals.

The crux of the investigation lies in the audit findings that a significant portion of the scrutinized transactions lacked proper documentation and, in many instances, were deemed outright illegal.

However, the unfolding investigation has raised concerns within the organized private sector, with some entities contemplating legal action against commercial banks for unresolved forex bids.

Despite these tensions, Governor Cardoso reassures that the foreign exchange market remains open and transparent, inviting stakeholders to address their forex needs through the official channels.

Furthermore, Cardoso clarified the distribution of fertilizers to farmers as a one-off measure and not indicative of a shift back to direct interventions by the CBN, underscoring a commitment to strategic, regulatory governance rather than direct market involvement.

 

 

 

 

 

 

 

 


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E-Financial

CBN Urges Banks to Expedite Action on Recapitalisation

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Central Bank of Nigeria (CBN) has directed deposit money banks in the country to expedite action to increase their capital base from the current ₦25bn.

CBN Urges Banks to Expedite Action on Recapitalisation

Olayemi Cardoso, governor of CBN

Olayemi Cardoso, governor of CBN, stated this during the apex bank’s 294th meeting of the Monetary Policy Committee (MPC) on Tuesday in Abuja, when the MPC hiked the interest rate by 22.75% to 24.75%.

The apex bank chief said the MPC examined developments in the banking sector and expressed satisfaction that the industry remained stable. The committee, however, said to guard against risk, commercial banks in the country should accelerate their recapitalisation efforts.

Cardoso said, “The MPC also reviewed developments in the banking system and noted that the industry remains safe, sound, and stable. The committee thus called on the bank to sustain its surveillance and ensure compliance of banks with existing regulatory and macro-potential guidelines.

“The MPC also enjoined the banks to expedite actions on the recapitalisation of banks to strengthen the system against potential risks in an increasingly globalised world.”

 

 

 

 


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