These days, technology makes it possible to have more control over a wide range of things in your life. For instance, through your mobile device, you can access your account balances or control the temperature in your home even when thousands of miles away.
New products in the changing payments landscape will soon allow you to manage and control your payment cards much the same way – through an app. These enhanced consumer card controls could be the answer to the challenges that many financial institutions have experienced over the last couple of years, such as higher fraud costs, lower interchange revenue, higher regulatory pressure and greater user expectations.
The goal is that by empowering consumers with more control, financial institutions will receive higher engagement, while lowering fraud costs. This will make card-control programs more profitable by driving their cards top of wallet.
The concept seems logical, but will consumers embrace this technology?
Consumers soon will have more control over card features and payments than ever before, putting them in the driver’s seat when managing their debit, credit and even prepaid cards. Consumers could turn a card on when they plan to make purchases and then turn it off when they’re done. They could customize alerts to notify them of any deviations from their set usage profile, such as transactions made outside the vicinity of their mobile phone or purchases made at retailers that they normally don’t frequent. These features are of much value in the battle against potential fraud and one’s own peace of mind.
Additionally, these types of apps will allow you to control your card to only be used in a specified region as well as choose which merchant categories to allow, for example, allowing grocery charges but denying gas station charges. You can even limit what kinds of transactions are allowed, such as allowing card-present purchases only while blocking eCommerce.
In a nutshell, consumer controlled cards can provide consumers more transparency, security and convenience while offering a differentiated solution for financial institutions that will potentially lower fraud and promote higher card usage. In this day and age, consumers are looking for simplicity and power, literally in the palm of their hand. People love having choices, but when it comes to card controls, the question does arise, will consumers find these options and tools more convenient or will they just leave it in the hands of their trusted financial institution? Stay tuned-in for more!