2014, as with any new year, is full of promise. One thing it’s promising already is to wreak havoc on recurring credit card businesses. With the proper updater strategy in place, this impact can be significantly diminished.
The recent credit card data breach at Target stores after Black Friday has impacted approximately 70M (initially thought to be closer to 40M, the number has been revised to 70M and some experts believe the final tally could go even higher) credit and debit cards for shoppers who made purchases at Target stores between November 27th and December 15th. 70 Million. This means two things for merchants – 1) a very large number of cards will be reissued. 2) As the thieves are testing or using the cards, merchants might get hit with orders that will result in fraud chargebacks. However, there are way to help reduce your exposure to these fraud chargebacks, as well as to combat the churn that will result with that large number of reissued cards.
In addition to the credit and debit cards that will be reissued due to the massive data breach at Target, Chase has also announced that they will be converting their entire US-issued portfolio to Visa. Approximately 16M Chase MasterCards will be converted in 2014. They plan on making the change over the course of the year, converting about 1.3M cards each month.
These two occurrences will impact just over ten percent of all US issued cards. There are tools in place to combat card reissuance, including Account Updater for Visa and MasterCard, and now American Express’s new Card Refresher program. To be sure your decline recovery and prevention tools and fraud prevention tools are all in place and fully functional before […]