Bank Card Conference
in Chicago, IL.
Additional Info

Additional Info

• OneBridge Spotlight: Visa payWave
  
  
• Timely Contact with Cardholders Pays
  Off in Mitigating Risk
  
  
• Visa News
  
  
• OneBridge Adds Support of Compromised Event Code to Risk Management Arsenal
  
  
• A New OneBridge Client Communication: Product Management News
  
  
• Important Reminders
  
  
• Industry News

OneBridge Spotlight: Visa payWave                                                 
We’re in the News!
OneBridge Adds Contactless Card Processing                              
cutimes.com (Daily News)
                                                                                                    
Credit and debit cards processed through OneBridge may now be issued with
both the magnetic stripe and contactless chip functionality on a single plastic
card.

Contactless card payments are rapidly emerging in the consumer marketplace. 
They provide the cardholder the ability to use their Visa credit and debit cards in
a new way.  Additionally, while consumers make over $1.2 trillion in cash payments annually, contactless payments provide an opportunity for you to capture paper-
based spending from cash-heavy merchants such as quick-service restaurants,
movie theaters and convenience stores.  Visa has introduced Visa payWave, their
answer to contactless payments.

OneBridge is supporting Visa payWave and contactless payments as part of our authorization processing service.

If you would like to participate in Visa payWave you may add it to any of your consumer credit or debit card programs.  Participation will require that you purchase new card inventory with the contactless chip in the card stock.  Once the credit or debit cards have been issued/reissued on the contactless cards, your cardholders
may begin using them at contactless devices in addition to swiping the cards as they do today.

For additional information on adding Visa payWave to your credit and debit cards, please click here or contact us at 800.322.4035 or by email sales@onebridge.com.

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Timely Contact with Cardholders Pays Off in Mitigating Fraud Loss
Stopping fraud often requires that you make contact with your cardholders to verify whether suspicious activity is legitimate.  The timeliness of that contact is critical. 
With Fraud Scout working in tandem with OneBridge risk management products like
VAA Fraud Detection and Real-time Authorization Filters, clients are seeing their
losses greatly reduced. Here’s a snapshot of a recent success story from a
OneBridge client.

On June 21, 2007 at 6:37 p.m. EDT in Mexico, someone was attempting to make a
$462.47 transaction using a debit card number.  Fortunately, the OneBridge client
had a real-time authorization filter in place for authorization requests originating
in Mexico and the transaction was declined. 

Managing the risk didn’t stop there. The VAA risk score was also high and the score
met the client’s criteria for Fraud Scout to go to work for them.  Within moments of
the suspicious Mexico transaction a call was made to the cardholder.  The cardholder confirmed through Fraud Scout that it was not their transaction and the card was automatically blocked. 

The fraud savings mounted because several more transactions were subsequently attempted on that debit card number.  As a result of the financial institution's effective use of OneBridge risk management solutions, including early cardholder notification, they saved more than $1,100 on this one compromised card number.  This is just one example of how timely contact with cardholders proved to be key in minimizing card fraud losses.

For more information about our risk management solutions, please contact Client Services clientservices@onebridge.com, or contact your OneBridge Regional Vice President, Sales.

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OneBridge Adds Support of Compromised Event Code to Risk Management Arsenal
In the July 26 edition of Product Management News we shared information about the availability of a new data field in authorization messages that can help combat fraud
in real-time.  We wanted to bring you even more information about this exciting new feature of Visa Advanced Authorization (VAA) because it can have very favorable
impacts on risk management results.

As we announced, Visa authorization messages can now be populated with a
Compromised Event Reference (CER) ID . The CER ID provides real-time recognition
of accounts that were part of a large scale compromise like we’ve seen with the
TJX, CardSystems and DSW compromises.  However, benefiting from the new
data is dependent on downstream risk management solutions such as OneBridge
Real-time Authorization Filters.  

Using the new ID in conjunction with our real-time filters positions your financial
institution to create additional authorization strategies that can really pay off. 
You’ll be positioned to not only drive down losses but also drive down risk manage-
ment operating costs while driving up cardholder satisfaction. 

So how does Visa determine if an authorization message should be assigned a
CER ID? If the card was part of a compromised event that impacted a minimum
of 500 accounts; and if a VAA Compromised Account Risk Condition Code was
assigned to that compromised event, a CER ID will be calculated and added to the authorization message.

Visa conducted a pilot study of the new ID across eight large issuers.  Their results demonstrated that using the CER ID in conjunction with the VAA Risk Score
dramatically improved fraud detection results. For example, false positive ratios
were a very low 6:1 for transactions that have a VAA Risk Score greater than
40 and a CER ID.  That means that for every 6 suspicious authorizations alerted,
1 was fraudulent. Conversely, without the CER ID the false positive ratio was 32:1.

That same study showed that when alerting on risk scores of 70 or above, which
many OneBridge clients currently utilize with our risk management solutions, the results were even more remarkable.  The Visa study found that for 70 or above without the CER ID the false positive ratio was 12:1.  When the CER ID was added false positives dropped by 10 to 2:1.  Fifty percent of the alerts were fraud.

You can see from the results of the Visa study that adding the CER ID to the VAA
Risk Score can dramatically drive down false alerts and driving down false alerts has numerous benefits for your card program.  First, your team members will save time
spent reviewing false alerts and very importantly, your cardholders will not be
contacted on as many legitimate transactions, reinforcing a positive overall experience
that they associate with their card. 

So should your financial institution implement this new VAA ID?  It really depends
on what your practices are for cards that appear on CAMS reports.  If you auto-
matically block all cards and order replacements you may not be interested in this additional data.  However, some clients don’t block cards that are inactive or close
to expiration.  If your financial institution has this type of practice, you might
consider using the CER ID to catch potential fraud on the cards that were not automatically blocked.

Financial institutions that would like to drive down their costs when a compromised
event occurs could consider implementing the CER ID and establishing real-time authorization filters rather than automatically blocking and replacing all the cards. 

For information about this or other risk management features of the OneBridge
system, please contact your OneBridge Regional Vice President, Sales or Client
Services at 1-800-322-4035 or clientservices@onebridge.com.  

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If you didn’t receive the July enhancement update or would like to be added to
our publication list, please let us know by sending an email to Michelle Brantley at marketing@onebridge.com.  There’s exciting information that you won’t want to
miss!

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