Starting March 8, 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 [image-nocss] 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 can opt-in to one or both of the available fraud prevention tools--a Virtual Auto Dial Backup 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 backup 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. Within early implementations of the VADB and AVS capabilities, some participating BP sites have seen as much as an 85% decrease in chargebacks, the company said.
Jennifer Brock, of Corrigan Oil Co., Brighton, Mich., 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 backup features to the lineup, 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., Baltimore, 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 chargebacks," he said.
In addition to offering tools that help its network prevent payment card fraud, BP said it will 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 are tracking. BP is also offering its network a series of internal webinars to address changes, program questions and customer eligibility requirements.
London-based 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. BP is the single, global brand formed by the combination of the former British Petroleum, Amoco and Burmah Castrol. BP is a global producer, manufacturer and marketer of oil, gas, chemicals and renewable energy solutions.
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