Fraud Transacted in the U.S. Declines

Since 1993, reported fraud transacted in the U.S. has declined steadily relative to sales. But in fourth quarter 1997 we saw the first decline in actual losses since first quarter 1994. According to Visa International, fourth-quarter losses transacted in the U.S. were 14 percent lower than during the same period in the previous year, amounting to 0.09 percent of sales.

What's behind this trend? Different types of fraud are addressed by different measures, so no single effort can be credited with fraud reduction. CVV, Issuers' Clearinghouse Service, Address Verification Service, and Fraud Awareness efforts are some of the Visa programs that make a difference. But one thing is certain: 75 percent of all fraud—lost/stolen and counterfeit—can be affected by awareness and follow-through at the point of sale.

Issuers, Acquirers, and Merchants Make the Difference
Issuers have been diligent in effecting reductions in fraud from cards stolen in the mail, application fraud, and account takeovers. Issuers' systems also recognize out-of-pattern purchasing activity, which helps detect lost/stolen card fraud, as well as magnetic-stripe counterfeiting. These systems have also been adjusted to detect account-probing attempts—which impact both counterfeit and mail-order and telephone-order fraud.

Acquirers who practice sound underwriting procedures and monitor authorization and deposit activity for irregularities are responsible for detection and reduction of fraud concentrations at their merchant locations. Fraud can be prevented by regularly providing merchants with updated fraud awareness training and materials.

Merchants themselves are more aware of card security features and proper card acceptance procedures, and are more confident about trusting their instincts when faced with a card, customer, or transaction that doesn't look or seem right.

Even so, lost/stolen card fraud accounts for 60 percent of total fraud—up from 54 percent a year earlier. And lost/stolen card fraud is the only fraud category that is steadily increasing, both in terms of losses and as a percentage of sales.

Reducing Lost/Stolen Card Fraud
The best defense against lost/stolen card fraud is signature comparison, but most criminals know who will or will not follow through. So the key is getting the sales associate to retain the Visa card throughout the entire transaction. Once the draft has been signed, a quick signature comparison can stop most fraud.

What should a merchant do if the card isn't signed, or if the signature panel reads "See ID"? Since an unsigned card is not valid, the cardholder must sign the card and present identification, and the sales associate must then compare the signatures on the draft and the card to that on the identification.

Visa has an available handout that merchants can use with customers who are reluctant to sign their cards. Visa also has a variety of materials that can be helpful in explaining card security features and card acceptance procedures, giving sales associates the knowledge and confidence they need to stop fraud.

We All Play a Part
There is no single effort that can stop fraud. But behind-the-scenes monitoring systems, coupled with awareness at the point of sale, can help reduce fraud and save cardholders, merchants, and Members millions of dollars each year in overhead resulting from requests for copy, chargeback processing, and fraud.

Interlink Continues Its Dramatic Coast-To-Coast Expansion As America's Leading Online POS Service

Interlink has now expanded to more than 320,000 merchant locations in all 50 states. Over 1200 financial institutions with more than 40 million Interlink cards have helped fuel the platform's rapid expansion.

Much of this growth can be attributed to streamlined cooperation among Acquirers, processors, and ISO's to expand Interlink to new merchant locations, and convert all online PIN-based merchants to Interlink.

Visa actively works with Acquirers and processors to convert existing online POS merchants to Interlink. Many of these merchants were signed on years ago for regional network online POS access. Most new merchants adding online POS, as well as merchants already online who are changing processors, receive Interlink as part of their new packages.

Interlink provides extensive national coverage in all 50 states, and processors and Acquirers in every part of the U.S. are working with Visa to add new Interlink locations. A direct mail package is available for each new Interlink merchant, with window decal, terminal decals, and a letter from their processor or Acquirer welcoming them to Interlink. We'll even help key in the input needed to add Interlink.

Interlink brings to your merchants over 15 million cards which carry only the Interlink online mark, with no regional network marks. Interlink was recently added to Visa's worldwide website. And Interlink merchant locations are now listed at the Interlink website—a great reference for financial institutions and 40 million cardholders when they travel.

The Interlink merchant locator shows Interlink merchants for any ZIP code, city, or state. Merchant locations can also be viewed in 30 different categories, including everything from gas stations or shoe stores to all merchants in a given ZIP code or city. Check it out.

Imagine a Moment Each Day When Visa Card Purchases are Free

Visa's Fourth Quarter National Promotion: Visa Magic Moments
It's true! Every day from November 1 through December 31, 1998, there will be a randomly selected "magic moment" when Visa card purchases are free! Visa Magic Moments gives Visa cardholders the chance to win their purchases—simply by using their Visa card. It works like this:

• Every eligible U.S. Visa cardholder whose transaction matches Visa's processing time stamp during a Visa Magic Moment will have the transaction paid for by Visa— regardless of the amount.
• Visa Magic Moments last for one second and will occur every day throughout November and December.
• Visa will issue the amount of the winning transaction either as a credit or a check, depending on the amount. It's all handled by us—so you and your merchants don't have to do anything to make it happen.
• There's no limit to the total prize pool—likely to be one of the largest ever awarded by Visa.

Visa Magic Moments has scored the highest cardholder interest level in nine years of concept testing, and also received the highest score for anticipated Visa card usage. A full 47 percent of cardholders said they would use their Visa card more during the Visa Magic Moments promotional period—significantly more than the average promotion response rate of 35 percent.

Use free Visa Magic Moments in-store signage to stir up the excitement at all your merchants' locations. Available signage includes:

• Tent Cards
• Register/Window Decals
• Double-sided Posters
• Restaurant Check Presenters
• Employee Stickers

Merchants will also be invited to enter the Visa Magic Moments Bonus Sweepstakes, where they could win up to $20,000 simply by displaying Visa Magic Moments signage. To learn more about the Bonus Sweepstakes, please refer to the Visa Magic Moments Acquirer Kit.

Visa's Most Exciting Promotion Ever
Make the most of Visa Magic Moments by giving your merchants everything they need to boost sales and Visa transaction volume during the holidays. Call Visa Fulfillment at 1-800-235-3580 to receive your free Visa Magic Moments Acquirer Kit, with order forms and supplemental materials to help you and your merchants throughout the promotion.

New Visa Purchasing Card Acceptance Sales and Marketing Materials

Visa Purchasing card sales are expected to exceed $20 billion by the end of the decade as more and more major U.S. corporations, government agencies, colleges, and universities turn to the Visa Purchasing card to increase efficiency and financial control.

New supplier enrollment is likely to remain the key to the continued success of Visa Purchasing. To maximize enrollment, Visa has developed a number of new marketing materials and tools to help Acquirers and suppliers get the most from their Visa Purchasing programs.

Signing Up New Business
Turn-key marketing tools are available to help Acquirers target new suppliers for Visa Purchasing card acceptance. Two of the best ways to target new accounts are direct mail and personal sales calls. Send a brochure and cover letter from one of your sales representatives to a target list of suppliers to solicit credit card business. Use the brochures on sales calls to present Visa Purchasing information and to use as a leave-behind.

• Visa Purchasing Card Acceptance Brochure (Item # V10071-02-98-02). Describes the benefits of Visa Purchasing card acceptance to commercial suppliers. The brochure also addresses the need to support a purchasing card's enhanced data requirement, and explains how Visa Purchasing works and why it gives suppliers a valuable competitive advantage.
• Visa Purchasing Card Supplier Directory Leaflet for Suppliers (Item # V10071-02-98-03A). Describes the benefits of accepting the Visa Purchasing card and being listed in the Visa Purchasing Card Supplier Directory on Visa's www.visa.com website.
• Visa Purchasing Acquirer Diskette Presentation. This presentation was developed for Acquirers to use in one-on-one supplier enrollment sales calls. It describes the features and benefits of Visa Purchasing and the benefits of transmitting enhanced data.

• Visa Purchasing Acquirer Diskette Package (Item # V10071AD). Turn-key tools that Acquirers can use to solicit new suppliers to accept the Visa Purchasing card. The diskette includes a sample spreadsheet, sample marketing letters, telemarketing scripts, progress reports to track solicitations, and a sample newsletter article.

• "Put It To Work" Marketing Materials. This colorful point-of-sale signage is available with the Visa Purchasing theme, "Put It To Work." Materials include posters, register stickers, tent cards, and invoice stickers.

It Pays to Display Visa Signage

In March of 1997 Visa Directions featured an article entitled "Visa Signage — the Key to Building Volume," which emphasized the importance of window and interior signage displaying the Visa symbol. Highlights included:

• Only 65 percent of Visa merchants currently display window signage
• Only 37 percent of Visa merchants currently display interior signage
• Cardholders frequently patronize a particular merchant simply because they display general purpose card signage
• Cardholders are often embarrassed to ask merchants if they accept payment cards, when no signage is displayed

To help Acquirers and merchants increase their Visa volume, Visa has created a merchant statement signage insert that explains to your merchants the benefits of displaying Visa signage, including free merchant-specific signage available from Visa. To further encourage merchants to place signage, the insert provides generic signage as well as signage specific to retailers, supermarkets, restaurants, and the lodging industry.

Acquirers can order these 3.5" x 6.5" inserts by calling Visa Fulfillment at 1-800-VISA-311 and requesting the Signage Insert, item # V10313-02-98A.

For more information about the insert, please contact your Member Relations Account Executive or Market Development & Acceptance Representative.

Your Attention, Please

Acquirer Educational Workshops will address what's new in the Card Acceptance Marketplace. Visa's MD&A group continues to address your needs by offering three Acquirer Educational Workshops in August 1998. The workshops will provide you with the latest updates regarding product, pricing, promotions, and access to the Visa staff responsible for these areas. Topics that will be addressed include:

• Interchange update
• Debit card products
• Acquirer research findings
• Promotions to build transaction volume
• Educational developments and materials
• ISO rules and fees
• Commercial card update
• Year 2000 testing
• Merchant fraud prevention

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