Overview
A new research report by Mercator Advisory Group, Operational Excellence: The Best Debit Marketing Strategy, recommends that the best way to increase debit card usage and customer retention is to improve dispute handling and reduce the incidence of false positives in fraud detection.
“Debit has gotten a bad reputation in the popular press for being unsafe and less accepted, particularly in digital channels. To counteract this sentiment, banks and credit unions are re-examining their approach to handling cardholder disputes to make it less disruptive to consumers and the underlying activity in their checking accounts. Issuers are also focused on fine-tuning their transaction monitoring tools to protect transactions without being so restrictive as to turn away too many legitimate transactions,” commented Sarah Grotta, Director, Debit Advisory Service at Mercator Advisory Group and author of the report.
This report has 14 pages and 5 exhibits.
Companies mentioned in this report include: CO-OP Financial Services, Mastercard, and Visa.
One of the exhibits included in this report:
- Decline in the use of debit cards compared to credit cards for retail purchases in the United States
- Transaction types that consumers prefer in digital channels
- Trends and best practices in handling debit card disputes
- The rising risk of “friendly fraud”
- Discussion regarding the use of data analytics to curtail false positives
Learn More About This Report & Javelin
Related content
Get Out Your Wallet: Gen Z Debit Payment Preferences
Generation Z—those born from 1997 to 2012—is coming of age and moving steadily toward greater financial maturity. Members of this generation differ from their elders in significant...
Retailer Debit Cards: Why Doesn’t Everyone Do It?
Consumers are on a quest for value and convenient ways to pay. Retailers and merchants want to boost sales and cut costs. These interests can get together through retailer debit ca...
2024 Annual U.S. Debit Card Market Data Review
Changes are afoot in the debit card market as higher prices drive more consumers toward credit for everyday payments and users increasingly demand digital payment technologies. Thi...
Make informed decisions in a digital financial world