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NewsBriefs

Big banks planning new digital wallet addition to their agile response times, these solutions can
handle high volumes of disputes and inquiries and zero
A group of big banks reportedly has begun work on a in on small-dollar transactions in a more cost-effective
new mobile wallet to compete with the likes of PayPal manner than their human counterparts, security experts
and Venmo. The Wall Street Journal reported that Bank of have noted.
America, JPMorgan Chase, Wells Fargo and four other
banks are developing a digital wallet that online shoppers Monica Eaton, founder of Chargebacks911 and Fi911, saw
can link with their debit and credit cards. The as-yet fraud explode during the pandemic, when consumers and
unnamed digital wallet will be managed by Early Warning merchants shifted to ecommerce. She said the current
Services LLC, the bank-own technology firm that already climate shows no sign of slowing down. If anything, she
operates the Zelle person-to-person payment network. noted, fraudsters are doubling down on activities as banks
struggle to stay a step ahead. "The fraud explosion during
Meanwhile, a report released Jan. 24 found that a the pandemic hurts banks, merchants and customers,"
significant number of Americans prefer plastic cards to Eaton said.
digital wallets. About half of consumers surveyed last
fall by J.D. Power (48 percent) said physical credit and "Now banks are over-correcting, and the result is harming
debit cards are easier to use than wallet apps on their vendors who aren't getting paid for valid sales. The
smartphones. Early Warning—which is owned by Capital dispute process for those merchants is challenging, with
One, PNC Bank, Truist and U.S. Bank, in addition to BofA, no guarantee of success." In the pandemic's aftermath,
Chase and Wells—is said to be readying the new digital ecommerce transactions continue to spike, noted the
wallet for rollout during the second half of this year. CNBC Technology Executive Council, which observed
Merchants fight fraud with AI, automation online banking and credit card fraud rising to historic
levels.
Chargebacks remain a danger in the post-pandemic era,
according to recent reports, and merchants are fighting
back with automated and AI-powered technologies. In