VISA Pilot Program to Provide Alerts to Wireless Devices

I must admit, I'm one of those people.  You know - the ones who are constantly checking their account balances and transactions online.  What can I say, I like confirming that my automatic payments have been processed and my credit card transactions are correct.

Needless to say, I was pretty stoked to read this NAFCU Today article highlighting the new pilot program being tested by VISA.  The program will use text messages and emails to alert cardholders of activity on their accounts. 

Here is more information from the VISA press release:

"Based on Visa's state-of-the-art transaction authorization system, and its ability to analyze and conduct risk score transactions "in-flight," the service allows Visa cardholders to set thresholds that will trigger a transaction alert. Alert types that Visa cardholders may choose in the pilot include:

    * cash withdrawal from an ATM machine;
    * a transaction initiated cross border;
    * an Internet or telephone transaction and
    * a transaction that exceeds an amount that has been chosen by the cardholder.

Through the alert received via email or SMS text, cardholders can verify the transaction details, and if the transaction appears to be irregular, can immediately contact their bank to help stop further transactions on the card. The service is designed to help cardholders keep closer track of their transactions and spending levels as they go about their daily routine."

Sign me up.  I would love the ability to set a dollar threshold above which I would receive a text message or email.  Imagine the reduction in fraud-related charges if your member was notified immediately of a transaction they did not authorize rather than reviewing (or not reviewing) their periodic statement.

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Looking for growth in the Generation X & Y markets?  The VISA press release includes information from a Pew Research Center study:

"more than 80 percent of consumers between the ages of 18 and 49 use their mobile devices to engage in activities such as sending text messages, taking pictures and accessing the Internet."

This study was conducted by the Pew Internet & American Life Project at the Pew Research Center and the full 12-page report would be a great read for strategic planning and marketing purposes.