Visa targets cardholder security as transaction volume hits $4.8trn globally

Visa, a global payments technology company, has launched a card security week campaign in Nigeria to raise awareness amongst cardholders on the security features found within the EMV chip card just as it revealed that the total payment volume through its cards across the world hit $4.7 trillion in 2014.

Speaking on the second day of the weeklong security campaign for cardholders held at the Protea Hotel, Ikeja Tuesday, Emezino Afiegbe, business development leader, Visa West Africa said that the global payments company has continued to come up with better innovation to make its payment platform safer for its customers and fraud-proof against fraudsters and hackers.

”Our strategic goal is that we want to foster global leadership. We are a global technology company and payments today have gone beyond use of plastics. We want to facilitate digital leadership as well. We have a robust security system underlining all our transactions to ensure that nothing dangerous happens to any of our cardholders while they are using our cards.

“Fear of fraud remains one of the major barriers to card usage in Nigeria and many other markets. We believe that greater awareness of the security measures in place as well as the advancements made in card security will enable consumers to comfortably enjoy the convenience of using their cards for their everyday transactions.”

Afiegbe revealed that due to Visa’s leadership in digital innovations, the payments company was voted the “Most Ethical Payments Company in the World in 2015” and the 5th Most Valuable Brand among 100 top global brands that also include Apple and Microsoft.

He added that Visa currently has 2.4bn cardholders globally; its cards are accepted in 2.3m ATMs across the world; its payment volumes for 2014 was put at $4.8trn while its total volume spending and withdrawal around the world is $7.4trn.

Also speaking at the event, Nita Omanga, risk services director, sub-Sahara, Visa International noted that various types of frauds include lost or stolen cards; cards-not-present (CNP) which primarily happens on the internet and online payment platforms; not received but issued fraud cases; counterfeits (or skimming) which have to do with duplication of original cards; and merchant fraud.

Omanga added that counterfeit frauds were the biggest threats to cardholders within the sub-Saharan region but fraudulent activities in Nigeria drop significantly when it introduced the EMV chip cards about 15 years ago. She also praised Nigeria’s banks for adopting the technology even ahead of South Africa and the United States after many of them invested heavily in technology.

She explained that while a plastic payment card may have an unassuming appearance, in reality the card is loaded with security features that keep customers protected and minimize their chance of falling victim to fraud. These tough yet subtle security features are present on all Visa cards and are complemented by anti-fraud measures run in the background on both Visa and bank systems.

“Although tiny, the square microchip embedded in chip-enabled type of cards is one of the most powerful weapons against fraud. The microchip is virtually impossible to duplicate and powerful encryption prevents unauthorized access to information stored on it, making electronic payments safer than ever before,” said Omanga.

The Visa risk services director also explained that as opposed to magnetic stripe technology, a chip is difficult to crack. An important aspect of EMV is its use of dynamic data. Each transaction carries a unique ‘stamp’, which prevents the transaction data from being fraudulently reused, even if the data or the card is stolen. This saves banks and consumers from losing money through fraud.

Other security features found in the EMV chip card, according to her, include the Card Verification Value (CVV), which is a set of three numbers printed on the back of the card either alone or as the final three numbers in a long string of digits. She said the CVV is never stored in the chip or magnetic stripe and assists in authenticating card-not-present payments, such as those performed online. She added that entering the CVV number manually proves that a cardholder is physically in possession of the card, inhibiting fraudsters who have obtained the owner’s account information.

She also explained that Visa also performs real-time fraud monitoring. This means that every time a consumer uses his or her card, the transaction is checked for unusual activity on the VisaNet system.

The use of plastic cards in Africa and most especially Nigeria has been on a steady rise with consumers shifting from cash and cheques. There has also been a notable increase in the usage of cards at Automated Teller Machines (ATMs) and at Point of Sale (POS terminals).

“Using debit cards for everyday purchases offers greater security, control and convenience compared to cash; it is also one way of ensuring personal finances are managed effectively with minimal costs for the cardholder,” Omanga added.