Online Banking Payments as a Tool to Increase Approval Rates and Reduce Fraud

100 billion dollars...that’s the volume of spending expected to shift from credit cards to debit cards during the current global Covid-19 pandemic according to Visa. It’s a significant number and it signals a trend in consumer behavior that brings both challenges and opportunities for merchants across the country.

The usage of debit cards for online transactions was trending upward even before the world was turned upside down due to Covid-19. The pandemic has definitely accelerated that trend though causing debit cards to rise to become top of wallet for many consumers this past year. This secular shift in consumer behavior leaves merchants facing growing concerns over card-not-present fraud, false declines, and chargebacks.

In a recent Merchant Risk Council (MRC) webinar titled, “Online Banking Payments as a Tool to Increase Approval Rates and Reduce Fraud”, Ted Iacobuzio, Vice President and Managing Director at Mercator Advisory Group, and Craig McDonald, Chief Business Officer at Trustly, discuss this recent trend, the inherent complexities that come with it, and how Online Banking Payments can help merchants effectively address these challenges.

Here are a few key takeaways from the webinar (P.S. If you’d like to view the full webinar, click here to view the recording. You’ll need to be an MRC member to access):
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Nearly half of consumers have decreased credit card usage

According to survey data shared by Ted Iacobuzio, 49 percent of consumers have decreased their credit card usage in the last 12 months. This represents the largest 12-month decline in credit card usage since the Great Recession.