“FraudGuard empowers our network to take action to help prevent fraudulent activities at BP stations,” says BP card operations manager.
BP Products North America Inc. has announced the launch of FraudGuard, its newly enhanced payment card fraud prevention program that features proven technology options for eligible sites and business incentives for participating retailers.
Eligible BP-branded marketers may opt-in to take advantage of different opportunities to increase payment card security at purchase points both indoors and outdoors.
According to a recent study, U.S. retail merchants incurred more than $139 billion in fraud losses in 2010. Moreover, nearly one-third of consumers worldwide have experienced credit or debit card fraud in the past five years. FraudGuard aims to protect BP’s marketers’ businesses as well as the consumers who visit their sites.
“Like many industries, we’re definitely seeing the impact of fraud and related charge backs at our U.S. retail sites,” said Joe Fumo, card operations manager. “FraudGuard empowers our network to take action to help prevent fraudulent activities at BP stations and provide a more secure site experience for their patrons.”
Eligible BP marketers have the power to opt-in to one or both of the available fraud prevention tools—a Virtual Auto Dial Back-up System (VADB) and/or an Address Verification System (AVS)—dependent upon the configuration of their current CommLinx system. Those who enroll on or before April 22, 2011 can start taking advantage of associated financial incentives as early as May 1.
BP marketers who opt-in to install either tool at a later date can enjoy certain financial benefits from that time forward.
—Option 1: VADB – technology that uses a back-up telephone line to increase secure data transmissions during satellite interruptions. BP is offering the VADB technology to all qualified marketers at no cost. Eligible sites may opt-in to receive a $20 rebate on their monthly CommLinx fees.
—Option 2: AVS – a security feature that prompts consumers to enter their billing zip code when using a payment card at the pump. BP will remain responsible for charge backs at the pump at sites that elect to install AVS.
BP marketers will receive pump decals to explain the purpose and procedures for zip code prompting to better educate consumers.
Participating Sites See The Impact
Within early implementations of the VADB and AVS capabilities, some participating BP sites have seen as much as an 85% decrease in charge backs. Jennifer Brock, of Corrigan Oil Co. based in Michigan, is an advocate of both opt-in technologies. “In the fight against fraud protection, AVS has helped to shield our dealers and ourselves from the ill-fated attempts of a few choice individuals. By adding dial back-up features to the line-up, BP is giving dealers more options and a better sense of security when it comes to protecting their locations,” she said.
Jay Tan of Carroll Independent Fuel Co. based out of Baltimore, Md., has seen first-hand how tighter security measures have helped impact his customers’ site experience. “Providing our sites with added securities have allowed our dealers to concentrate more on a positive buying experience for their consumers and shielded them from substantial charge backs,” he said.
BP To Reward Low-Fraud Sites in 2012
In addition to offering tools that help its network prevent payment card fraud, BP plans to reward marketers who attain a low fraud-to-sales ratio. In 2012, a $15 per month CommLinx rebate will be offered for sites that achieve a fraud-to-sales ratio of 0.010% or lower for the prior year (2011). This rebate will be made available to all BP marketers regardless of AVS or VADB participation and does not require enrollment.
BP has made an additional investment by enabling its network to self-monitor fraud cases through an online reporting system. BP marketers can review their charge back histories to see how they’re tracking. BP is also offering its network a series of internal webinars to address changes, program questions and customer eligibility requirements.
BP markets more than 15 billion gallons of gasoline every year to U.S. consumers through more than 11,000 BP and ARCO branded retail outlets and supplies more than four billion gallons of fuel annually to fleets, industrial users, auto and truck manufacturers, railroads and utilities.