Balancing Fraud and Convenience During the Holiday Shopping Season
by Nicole Reyes
As we gear up for the holiday shopping season, I wanted to bring up the topic from a different perspective – the perspective of the financial institution (FI).
I have blogged before about holiday shopping relating to your cardholders, including a recent post sharing tips for safe shopping online. However, a common struggle I see among FIs during the holiday season is how to allow for more card usage while keeping fraud losses down. It is a balancing act, and TMG works hard every holiday season to make shopping as convenient as possible for both our FI clients and their cardholders.
During the holiday season, card usage is always higher, especially the weekend between Black Friday and Cyber Monday. Therefore, FIs need to account for the increase in cardholder spending by raising card spending limits, number of daily transactions and perhaps loosening some of the fraud prevention methods that are in place other times of the year.