US Bank Links Card Acceptance To Mobile Phone Location

by Tim Sloane 0

This article in Finextra indicates that US Bank will offer a new service to cardholders for both Android and Apple devices. The service will evaluate the cardholder’s location when making a decision to authorize a transaction – so don’t leave your phone at home when shopping:

“Just in time for the holiday season, U.S. Bank has added location services to the U.S. Bank Mobile App, offering U.S. Bank Visa credit and debit card customers technology that uses their phones’ location to help verify whether their mobile devices and credit or debit card are in the same location.

By using the mobile device’s location in the authorization decision, U.S. Bank can help give consumers the confidence that their transactions will be approved, minimizing disruptions and further reducing the risk of fraud. The bank’s easy-to-use mobile app automatically provides consumers with this added layer of convenience and protection. Users will have the ability to opt out of the feature.

‘During the holiday season, consumers frequently make large purchases outside of known locations when traveling, and the location services feature gives our customers more control of their card activity, both domestically and internationally,’ said John Steward, president of the Retail Payment Solutions division of U.S. Bank. ‘It’s one more way our new U.S. Bank Altitude™ Reserve Visa Infinite and other cards can help make their holiday travel experience more relaxing and convenient.’ ”

Visa released an API last year in the Visa Developer Platform that enables a similar type of service, which we detailed in the April 2016 Mercator Advisory Report “The Visa Developer Platform: Opening the Gates to Innovation.” It is unclear if US Bank adopted this Visa API or developed its own technology.

Overview by Tim Sloane, VP, Payments Innovation at Mercator Advisory Group

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