Overview
A new research report by Mercator Advisory Group, Operational Excellence: The Best Debit Marketing Strategy, recommends that the best way to increase debit card usage and customer retention is to improve dispute handling and reduce the incidence of false positives in fraud detection.
“Debit has gotten a bad reputation in the popular press for being unsafe and less accepted, particularly in digital channels. To counteract this sentiment, banks and credit unions are re-examining their approach to handling cardholder disputes to make it less disruptive to consumers and the underlying activity in their checking accounts. Issuers are also focused on fine-tuning their transaction monitoring tools to protect transactions without being so restrictive as to turn away too many legitimate transactions,” commented Sarah Grotta, Director, Debit Advisory Service at Mercator Advisory Group and author of the report.
This report has 14 pages and 5 exhibits.
Companies mentioned in this report include: CO-OP Financial Services, Mastercard, and Visa.
One of the exhibits included in this report:
- Decline in the use of debit cards compared to credit cards for retail purchases in the United States
- Transaction types that consumers prefer in digital channels
- Trends and best practices in handling debit card disputes
- The rising risk of “friendly fraud”
- Discussion regarding the use of data analytics to curtail false positives
Learn More About This Report & Javelin
Related content
Typecast for P2P: How Venmo and Cash App Are Expanding Beyond Paying Friends and Family
Popular person-to-person payment apps such as Venmo and Cash App pioneered the easy digital payment of friends and family with easy-to-use and engaging apps. The problem: Now, thes...
Consumer Debit Payment Choice: Understanding Debit Card User Preferences
Amid a dynamically changing landscape for payments, debit remains a steadfast performer, serving as a workhorse payment method for everyday transactions. As consumer behavior shift...
An Executive Order: What’s the Impact of Eliminating Government Check Payments?
An order by President Donald J. Trump to eliminate the issuance and acceptance of paper checks by the government isn’t the first time an effort has been made to limit the use of th...
Make informed decisions in a digital financial world