Visa USA, the American arm of the global credit card company, is to use new screening technology in an effort to help protect customers from fraudulent card applications and identity fraud.
Personal data from eFunds will be added to Visa's current customer checking system, extending the database available to Visa for checking customer contact details and credit history.
The new technology, developed by eFunds subsidiary Chex Systems, is designed to undermine fraudulent applications for credit cards, as well as the use of bogus credit card applications to steal existing customers' identities.
Should a credit card application received by Visa and checked against personal data via the new system turn up unusual activity on a related account, the application will be flagged and potentially halted.
"Losses due to account application fraud, account takeover, and identity theft are critical challenges for card issuers to address," said Rahul Gupta, senior vice president of eFunds.
The announcement comes as several UK high street banks are testing electronic devices designed to cut down on card-not-present and identity fraud when shopping and banking online.Click here to compare the best credit cards.
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