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Floor limits and credit card fraud in the South African credit card industry

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dc.contributor.advisor Ochonogor, Chukunoye Enunuwe
dc.contributor.author deMatos, Richard Bernard
dc.date.accessioned 2009-03-11T08:15:21Z
dc.date.available 2009-03-11T08:15:21Z
dc.date.issued 2007
dc.identifier.uri http://hdl.handle.net/10500/48
dc.description.abstract Credit card fraud losses within the South African credit card market in 2006 exceeded R257M. A portion of these losses (R179M) are within the borders of South Africa and its common monetary area partners. This represents a startling 70% of credit card fraud on magnetic stripe cards used within the borders of South Africa. The South African credit card industry adopts floor limits at certain merchants and merchant categories. South Africa is one of a few countries in the world that still adopt floor limits on credit cards within its payment card industry. Credit card transactions on magnetic-stripe cards conducted below the merchant’s designated floor limit do not go to the issuing bank for authorization. The first time the issuing bank acknowledges these transactions is when they are settled on average two days later. The rationale for not adopting zero floor limits within the South African credit card market is the supposed inability of the existing telecommunications infrastructure to handle the volume and frequency of data submitted by merchants for authorization. The impact of reduced fraud and bad debt losses through adopting a zero floor limit in relation to merchant operational costs is the basis of the research. The research also aims to examine the Proposition that the existing telecommunications infrastructure is unable to support a zero floor limit proposal. en_US
dc.language.iso en en_US
dc.publisher University of South Africa en_US
dc.subject Technology en_US
dc.subject Value chain en_US
dc.subject Technologies for competitiveness en_US
dc.title Floor limits and credit card fraud in the South African credit card industry en_US
dc.type Thesis en_US


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