Mastercard Launches A2A Protect to Target “Fast Fraud”

Mastercard has introduced a service which is aimed at preventing fraud in account-to-account (A2A) payments.

Mastercard A2A Protect, which was unveiled earlier today being Monday and this will debut initially in the United Kingdom, is intended to provide a “new clear” dispute resolution structure along with fraud protection technologies.

“We have a responsibility to protect consumers from the rapid fraud that comes with fast A2A. According to a news release from Jorn Lambert, chief product officer of Mastercard, “Mastercard A2A Protect offers significant advantages to all parties involved in a transaction.”

All parties gain from speedier and more predictable results, and financial institutions save money on operations thanks to standardized real-time fraud insights and simplified dispute resolution. Most significantly, while making account-to-account payments, customers can rest easy knowing they are adequately protected.

Mastercard’s real-time transaction rating service, Consumer Fraud Risk (CFR), is already in use by 15 banks, which account for 90% of A2A payments in the United Kingdom, according to the release. According to the corporation, this solution significantly contributed to the 20% decrease in approved push payment (APP) fraud incidents that occurred last year.

The press announcement states that A2A Protect is beginning with an emphasis on “the most acute needs,” such APP fraud, and will provide a combination of fund-recovery procedures, consumer protections, and prevention measures.

The corporation also notes that, according to data from U.K. Finance, A2A fraud cost the United Kingdom 592 million pounds ($794 million) last year. In an effort to combat fraud, the Payment Systems Regulator (PSR) in the United Kingdom has established a 50:50 responsibility model for APP fraud.

“With consistent expectations for consumer protections, Mastercard A2A Protect adds to that,” the corporation continued.

Earlier this year, PYMNTS spoke with Johan Gerber, executive vice president and head of security solutions at Mastercard, about the company’s efforts to prevent fraud.

“The world is expanding so rapidly from a digital point of view,” Gerber added. “As more and more people enter the digital economy, there is a huge opportunity for financial inclusion through the digitization of economies.”

“However, we can only accomplish this if we ensure that your initial encounter on a digital platform does not result in abuse or fraud,” he continued. “That initial encounter must be positive. It has to be good and secure.” 

In order to combat “friendly” fraud, the business also recently extended its First Party Trust program. Alternatively referred to as first-party fraud, this phrase describes legitimate transactions that cardholders contest, either on purpose or accidentally.

Although this kind of fraud is not malevolent, as PYMNTS has stated, the rise in customers contesting valid transactions nevertheless poses a serious financial risk to retailers, especially small and medium-sized enterprises (SMBs).