U.S. Bank has integrated Visa-developed technology into its mobile applications that enable the location of a card transaction to be matched to the location of the customer's mobile.
The solution, Geolocation Service, helps to reduce card decline rates and offers more security for Visa cardholders.
U.S. Bank said that matching the location can help ensure that transactions on customers’ cards are approved while minimising disruption and further reducing the risk of fraud.
At the outset, the programme will be available to the bank’s co-brand and financial institution partners.
Users with U.S. Bank FlexPerks Visa credit cards can opt-in to the new geolocation feature through the FlexPerks mobile app.
Cardholders who participate in one of the bank’s co-brand credit card programmes may use the corresponding credit card management mobile app to opt-in as well.
Additionally, the service is available through the U.S. Bank’s Elan partner financial institutions via the Elan mobile app. The geolocation technology will be made available for the U.S. Bank mobile app in the future.
U.S. Bank senior vice president and head of product and marketing for the retail payment solutions division Clifford Cook said, “When your phone is on and you’ve opted-in for geolocation, U.S. Bank can validate that the expense is legitimate and avoid customer frustration.”
Visa senior vice president of risk and authentication products Mark Nelsen said: “Visa’s geolocation technology helps financial institutions deliver a more convenient and more secure payment experience wherever consumers might travel.
“Whether domestic or international, U.S. Bank can more confidently and accurately approve safe transactions when the location of the consumer’s mobile device matches the location of a transaction.”