FIS Targets Clearer Debit Descriptors to Potentially Ease Chargeback Rates – Digital Transactions
Processor and core banking services provider FIS Inc. is taking a step to make it easier for debit card users at banks and credit unions to understand debit card transactions on their statements. It’s a move that could reduce chargeback inquiries.
Developed with Spade, a New York City-based transaction data firm, the service, available now to more than 2,500 issuers with more than 160 million debit cards on the FIS debit platform, provides more precise merchant data at the transaction level. This will help consumers by providing clearer and more recognizable merchant names on their statements.
Spade is able to supply the simpler-to-understand information thanks to an API it developed. Spade is able to match data in near real time in its proprietary merchant databank with information FIS supplies via the API. The original transaction data from FIS is replaced with the merchant name, logo, Web site, address, which includes its latitude and longitude coordinates, category, and details of any third parties to the transaction, says Oban MacTavish, Spade chief executive and cofounder.
FIS says it also can help by potentially reducing consumer chargeback inquiries. In 75% of instances consumers jump over the merchant and go directly to their issuers in disputes, according to the “Chargebacks: The Case for Coordination” report from Javelin Strategy & Research commissioned by Mastercard Inc.
“Spade data enrichment has the potential to lower chargeback and dispute rates by improving the clarity and recognizability of merchant information,” Kim Bynan, FIS head of issuing solutions, tells Digital Transactions News via email. Pricing was not disclosed.
In addition to more consumer-friendly information on statements, the service also could help improve authorization rates for debit issuers because of its better transaction data. Another benefit is the more accurate transaction data that can be used to produce more accurate analytics, and improve personalized cardholder experiences. It can also be tapped for AI purposes, FIS says.
