Advanced fraud protection tools implemented by major credit card issuers have significantly reduced credit card fraud, but legitimate cardholders are increasingly seeing their valid transactions declined as a result.
Major card networks have adopted enhanced anti-fraud technologies to stop theft.
While these security measures protect accounts, the broader fraud detection filters are creating unexpected obstacles for consumers during routine shopping.
Consumer Adviser Clark Howard explained that while fraud rate numbers have dropped, the stricter detection mechanisms often affect legitimate shoppers.
“I want to tell you some good news. Credit card fraud has declined a lot,” Howard said. “The way it’s declined is that the big credit card issuers and Visa, MasterCard and American Express have more sophisticated tools than they used to to ferret out fraud. But unfortunately, the net of trying to catch fraud, more and more, you and I, legitimately as purchasers trying to buy something, are having the purchases declined.”
These false security alerts occur most frequently during online transactions. Purchases involving specific retail categories, such as electronics, are especially prone to trigger automatic transaction blocks.
When a legitimate purchase is flagged, cardholders can resolve the issue directly with their issuer.
“You just have to call the customer service number on the back of your credit card, and they will approve the charge once they validate that it really is you,” Howard said.
Once the credit card company confirms the buyer’s identity, the transaction will be authorized.
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