A Deep Dive into Getting the Most Value from Scheme Data Sets
Visa & Mastercard data sets provide a rich source of information that Banks & Fintechs use to power transaction decisioning, fraud & risk management, customer analytics and deploy financial controls. These data sets contain a significant quantity and wide array of information about transactions being made on Visa or Mastercard products. In this article, we'll take a dive into:
The differing components of Visa & Mastercard data sets,
How they are typically used by Banks & Fintechs, and
The complexity of data sets and the specialized skills and resources required to properly analyse and interpret the data
Visa & Mastercard Data Sets: Introduction
Visa & Mastercard produce a large quantity of data to support domestic and international transaction processing. These data sets contain thousands of data points spread across authorization, clearing, settlement, charge-back files and separate service invoices. These files contain detailed information on:
Individual transactions:
– The most fundamental component of a card scheme data set is transaction details. This includes the date and time of the transaction, the amount spent, the merchant’s name and location, and the card type used. The transaction details are essential for understanding spending patterns and identifying trends in consumer behaviour.
Cardholder information:
– This includes the name of the cardholder, the account number associated with the card, and the billing address. This information is used to identify individual cardholders and track their spending habits over time.
Merchant information:
– Merchant information is another critical component of card scheme data sets. This includes the name of the merchant, the merchant category code (MCC), and the location of the merchant. This information is used to identify merchants that are popular among cardholders and track spending by merchant category.
Transaction status:
– This includes whether a transaction was authorized or declined, as well as any other status information associated with the transaction.
Other data:
– Finally, card scheme data sets may contain additional data, depending on the specific data set. This may include information about currency exchange rates, rewards points earned or redeemed, and transaction fees.
In addition to transaction data processing, Visa & Mastercard data provide valuable insight into customer behaviour, fraud & risk management and financial controls. When harnessed correctly, these data sets support multiple teams within Banks & Fintechs and support Issuers in maximizing the use of their products and the financial profitability of their card programmes. Card Issuers harvest these data sets for the purposes of:
Product development & Marketing: Visa & Mastercard data sets are a valuable source of information for product development. By analysing spending patterns and identifying trends, Banks and Fintechs can develop new products and services that meet the evolving needs of their customers. For example, they may develop new rewards programs or launch new financial products tailored to specific consumer segments.
Financial control: Visa & Mastercard data sets are the foundation of payment account financial controls. These data sets allow Issuers to ensure that all card transactions are properly recorded and accounted for.
Fraud detection and prevention: Banks and Fintechs use card scheme data sets to detect and prevent fraud. By analysing transaction details and identifying patterns of fraudulent activity, they can quickly identify and block suspicious transactions, minimizing losses and protecting their customers’ accounts.
Profit maximisation: Card scheme data sets enable issuers to optimize financial performance by identifying areas to reduce costs or increase revenue, make informed decisions on pricing, product development, and marketing, and develop strategies to maximize profits and stay competitive.
By leveraging Visa & Mastercard data sets effectively, Issuers can improve their operations, offer better services to their customers, and stay competitive in a rapidly evolving financial landscape.
Visa & Mastercard Data Sets: Challenges
While card scheme data sets offer valuable insights into consumer behaviour and help banks and Fintechs improve their operations and services, there are several challenges that Issuers face in working with these data sets. These challenges include:
Data quality and accuracy: One of the biggest challenges of working with card scheme data sets is ensuring that the data is accurate and of high quality. With millions of transactions processed daily, it can be difficult to ensure that all data is accurately recorded and categorized.
Data integration: Card scheme data sets may come from multiple sources, including different payment processors and schemes. As such, integrating these disparate data sets can be a challenge.
Data volume and complexity: Card scheme data sets are vast and complex, with millions of transactions occurring each day. Analysing this data in a timely and efficient manner can be challenging, particularly for smaller Banks and Fintechs with limited resources.
These challenges inhibit Issuers from maximising their product and operations functions, driving the growth of service providers who specialise in working with Scheme Data. These providers range from specialist data reporting & reconciliation providers to full Treasury-as-a-Service (Taas) providers that combine data reporting & reconciliation services with treasury and payment operations services. TaaS providers offer integrations with multiple payment processors and schemes, making it easier for Card Issuers to access data-driven insights, reconcile data from multiple sources and drive new efficiencies in their treasury operations.
Visa & Mastercard data sets are a rich source of information, but Card Issuers are often challenged in maximizing the insights and processes that rely on these data sets.
About Cambrist
Cambrist is an award-winning technology company enabling Financial Operations and Product teams in banks and fintechs to gain more insight from their payment card programme data and create new, reliable sources of income. Our proprietary SaaS platform and advanced data analytics, combined with our team of industry veterans & experts, supports customers around the globe.
Learn more about Cambrist at cambrist.com