Preventing Fraud: From Account Opening to Issuance

Preventing fraud is one of the most challenging issues financial institutions face today. New ways of scamming consumers out of their money are devised every day. From account opening to issuance of credit, debit, and prepaid cards through the mail, is a high-risk strategy. More scammers than ever target customers, so consumers expect more protection from financial institutions.

In a society fueled by instant gratification, scammers take advantage of high volumes of cards mailed out to customers. Sending new and replacement cards this way risks interception by a third party for fraudulent use and identity theft.

Instant card issuance can avoid the risk of a card falling into the wrong hands. By issuing cards on site, financial institutions issue the card directly to the person at the time they make an account application. As a result, a customer walks out with instant access to funds to spend assured of reducing the risks of fraud without waiting for the card to arrive in the mail.

Fraud Prevention Through Instant Issuance

As technology becomes smarter, there are compelling reasons for financial institutions to offer instant issuance of debit, prepaid, and credit cards. Fraud prevention is at the top of the list. Instant issuance is such a simple solution. It removes the need for millions of cards to be processed by a third party, then sent through the mail. The fewer people involved in issuing cards, the less likely is the risk of fraud being perpetrated from the time of card application to card issuance.

While producing cards on site is less cost-effective for financial institutions than bulk manufacturing, costs can be recovered in other ways. The benefits of instant issuance outweigh production costs by:

  1. Supporting consumer issues with customer service for lost and stolen cards with instant replacements cards, on the spot. No more waiting for up to two weeks for replacement cards.
  2. Eliminating the costs of mailing out cards and PIN numbers.
  3. Reducing the risk of mail fraud and the instances of cards lost in the mail.
  4. Reducing replacement costs for cards lost or stolen through the mail service.
  5. Instant issuance eases consumer fear of fraud.

With credit card fraud rates high, many consumers feel exposed to fraud. High levels of data breaches reported can result in fraud on credit and debit cards. Higher fraud rates mean higher replacement levels of cards and more upset consumers. Anyone who has lost their credit card will know that sinking feeling and fear when discovering a credit or debit card missing. Then comes the difficult process of cancelling and reissuing all the cards. Then there is the delay while a consumer waits for a new card in the mail. This leaves consumers vulnerable, resulting in a negative experience and taking their business elsewhere.

This does not happen with instant issuance. Card fraud is a growing business for scammers, leaving serious consequences for financial institutions and their customers.

The only question that remains is: When are you going to offer instant issuance to your customers? Contact us today at info@IA360.com to discuss how instant issuance can improve market share for you.