Credit Card Transaction Data
The Ultimate Guide to Credit Card Transaction Data 2021
What is Credit Card Transaction Data?
Credit card transaction data creates datasets surrounding consumer purchases, providing companies with the ability to forecast future spending habits. Instead of cash, more customers are using credit card providers like Visa, Mastercard, and American Express (AMEX).
In the past ten years, 73% of the US population has minimized its use of cash. Equally, consumers are making more and more e-commerce and contactless payments and by 2026 these payment methods are estimated to rise by over 12%. Incentive and reward programs have also increased the use of electronic cards.
What is Transaction Data analysis?
Transaction data analysis is used in retail and hospitality to understand customer spending and credit card usage. Customer transaction datasets allow businesses to understand consumer behavior, track historical trends and make market predictions. With enough anonymized credit card user data, sales teams and data analysts can identify trends. Financial institutions and retailers can utilize card data to see spending habits, basket composition, share of wallet, and method of payment preference. These are all metrics which are examined in transaction data analytics.
When a customer makes a credit card purchase, be it when making an online payment or when purchasing their weekly groceries, the efficiency means it is likely the transaction will take place using a credit card. Unlike when customers use cash, this financial transaction data is captured by the consumer’s bank and used for payment transaction analytics. Data providers and aggregators collect this information and supply anonymized credit card data via datasets and APIs. Data is collected through a credit card transaction dataset or a credit card data API, allowing ecommerce sites to track credit card usage and customer spending history. This credit card transaction data focuses on capturing the pricing, any discounts, and the method utilized during the payment. Through data analysis retailers can use the commercial datasets to gain an insight into consumer transaction habits, segment customers according to their spending habits, and use these segments to help predict future company performance even before transactions take place.
The recent surge in credit card transactions means financial transactions and credit card spending datasets are more comprehensive than ever. Credit card data providers like Facteus offer a credit card users database with card data collected from over 15 million US debit and credit cards.
Who uses Credit Card Transaction Data?
A credit card dataset or credit card data API will tell you about a consumer’s credit card usage, spending and historical transactions, meaning transaction data is useful for all B2C businesses, both brick-and-mortar and ecommmerce. These businesses use transaction to reveal new insights into consumer spending, as well as for consumer data enrichment. Data providers and aggregators collect consumer transaction information, and supply anonymized credit card data via datasets and APIs.
Since debit and credit cards are commonly used to pay for goods and services, they represent a strong percentage of a country’s customer consumption and credit card spending behavior. By removing PII (personally identifiable information) from their datasets and aggregating the raw data, financial transaction data providers ensure businesses are buying databases they know are 100% privacy-compliant to inform business decisions.
Retailers and financial institutions can utilize credit card transaction data to analyze consumer behavior. With enough anonymized credit card user data, clear consumer spending patterns begin to emerge. From there, predicting a consumer’s next purchase decision is less about guesswork and more about decisions informed by transaction data analysis. Dataset-informed decisions are useful when it comes to the advertising and market sector of a company.
By having access to transactional data, companies can segment and target particular customers based on how frequently and in what quantities they spend their money and to gain an insight into the transaction methods used. For example, credit card data can identify audience segments that are more likely to purchase particular items, like shoes, for instance. If the transaction data of a digital advertising company shows that there are a certain number of shoe-buyers online in a given area, at any one time, they can target them with segment specific ads.
Credit card data providers can also organize a credit card transaction dataset according to regional codes. This makes location-based marketing and demographic analysis of consumers in a given region more accurate and data-driven. Successful ad campaigns informed by credit card transaction data enable retailers to save money in the long-run, providing the means to efficiently tailor adverts and incentives to individual consumers, aiding customer retention and supporting company growth.
How do banks use Transaction Data?
Banks have been recording transaction data since the 1960s. The main reason banks use transaction data is to ensure the retention of customers. The goal is to prevent customer churn and remain one step ahead of the competition by creating the most satisfactory banking experience. The transaction data provides banks with the datasets needed when identifying the evolving payment methods used most frequently by customers.
Recent technological advances have revolutionized banking capabilities, as well as influencing consumer behavior. In addition to traditional credit or debit cards, there has been a steady increase in alternative payment methods. There has been a rise in the number of people using VisaCheckout or Materpasses. Equally, there has been an over fourfold increase in the number of people using PayPal since 2010. By analyzing consumer spending data and payment method data, banks can create a complete picture of a customer. Using data surrounding previous spending habits and information surrounding payment methods, banks can make well-informed predictions and anticipate customer demand, ensuring the creation of a banking experience more satisfactory than the experience offered by market competitors. Using transaction data allows banks to adapt to the evolving digital market, personalize deals and create a seamless banking experience, ensuring customers remain loyal and feel encouraged to make more purchases with their bank. From here, banks can immediately optimize their customer satisfaction operations and reduce customer pain points based on real-time credit card transaction data.
How can Credit Card Transaction Data be used to detect fraudulent activity?
Credit card transaction data can be used in KYC and fraud prevention strategies. Credit card fraud happens when credit card transactions made weren’t authorized by the credit cardholder. From 2011 to 2020, the global financial losses to fraud rose and set to increase by 25% by 2027. One way to detect fraud is through surface-level analysis and keeping an eye out for transactions over a certain amount, or for transactions carried out in abnormal locations. However, a more efficient way for banks to detect fraud is by using credit card transaction data to create datasets. With AI, MasterCard has developed a system to track the different credit card transaction variables such as size, time, location, and payment method.
Banks can use the credit card transaction datasets generated through their newly-developed systems in collaboration with AI to detect abnormal credit card activity. Tracking these variables and establishing customer datasets allows the system to create a real-time assessment of whether the transaction in question is fraudulent or not, ensuring fraud is detected immediately, minimizing fraudulent activity, and preventing financial losses in the long-run.
Which companies sell Credit Card Transaction Data?
Visa, Mastercard, and American Express are among the major credit card providers which connect users to aggregated panels of real-time transaction data. These capture the millions of transactions which take place every minute using these brands of credit cards. Transaction datasets from these companies undergo strict anonymization procedures. The datasets are available at scale and are some of the best commercial credit card datasets available on data marketplaces for informing business-to-business transactions.
Do Credit Cards sell Data?
There are strict privacy laws, including GDPR and CCPA, surrounding credit card transaction data that protect the user, as with public websites and apps. Credit Card issuers such as Visa, Mastercard, and American Express sell anonymized and aggregated transaction data. Transaction data is sold to companies developing their advertisement and marketing strategies or to hedge funds seeking to predict future stock developments. However, credit card issuers operate on a consent-manage basis, meaning users can monitor which data they share with banks and issuers and that they can opt-out whenever. All credit card transaction data which verified providers sell is hashed, meaning it is stripped of PII.
Do banks sell Transaction Data?
Historically, banks focused on compiling the demographic data of an individual customer. However, the ability to track consumer spending habits has increased the scope of credit card transaction datasets. As with credit card issuers, banks must also follow strict privacy regulations to protect their customers’ data. This means that credit card transaction data is hashed and anonymized, so that it is consent-compliant and in line with GDPR and CCPA. Once credit card transaction data is aggregated and anonymized it is consent-compliant accordin to GDPR and CCPA regulations. Banks can then sell the transaction data to stakeholders seeking to collaborate with artificial intelligence (AI) companies and use the datasets to generate predictions for future consumer behavior and stock development.
What are the sources of Credit Card Transaction Data?
Major credit card providers include Visa and Mastercard. Visa and Mastercard credit card issuers authorize and process credit card transactions, making them some of the best sources for credit card transaction databases. Visa bridges transactions between financial institutions and consumers. Visa is the largest credit card company, the Nilson Report revealing how over 300 million Visa credit cards were circulating globally in February 2020. With Visa credit card transaction data, businesses can conduct customer transaction data analysis across hundreds of vectors and geographical regions and make more informed decisions to support their company. According to the same February 2020 study, 243 million Mastercards were also in circulation. Mastercard transaction data delivers cards and payments market intelligence for consumers across the world. Mastercard’s credit card transaction datasets make granular credit card analytics possible, for example, basket composition intelligence and individual consumer spending habits.
Some companies such as PayPal are a beneficial source of credit card transaction data for merchants. PayPal’s Payment Data Transfer relays customer transaction data directly to merchant websites. The purchase information can help when updating business databases. These are only eligible for merchants who comply with Level 2 or Level 3 (PCI compliance) transactions. Transactions that fall under Level 1 qualify as regular card transactions.
To ensure the shared card data is accurate, card companies perform strict verification procedures for data collected at either Level 2 or 3, making it eligible for incentive rates because it is more accurate.
The levels refer to the amount of credit card usage data collected per transaction. The higher the level, the more data is collected. Level requirements usually differ between financial transaction datasets but are similar to the following offered by PayPal:
Any merchant who accepts credit cards complies with this level. It functions like a Visa or Mastercard and is authorized and associated with the same transaction data.
At the point of sale, data surrounding the sale, such as tax, customer code, purchase number, and invoice number, is captured. Most of the time it is combined with the merchants’ information such as Tax ID number, state, and postal code data.
Additional information on the actual product or service is shared. Data points such as line items, product codes, item description, unit price, and quantities as well as shipping postal code data are added to the information provided at Level 2.
How much Data does a Credit Card Transaction take?
The amount of data collected from a credit card transaction varies between POS (Point-of-Sale) systems. For example, the amount of data captured from brick-and-mortar transactions, where data comes from a credit card’s magnetic strip, is different from online transactions conducted using an ISO. However, typically, the average amount of data collected during a credit card transaction is below 1KB. Each commercial credit card transaction datasets include the credit card number, expiry date, CVV number, transaction value, amount of transaction, and merchant information, including merchant ID, location, domain, and industry but before buying credit card transaction data online, it is important to consider the volume of data you need for your analysis of credit card transaction data.
How far back can Credit Card statements go?
In the form of credit card statements, historical transaction data is kept for over 5 years. However, this is the minimum, and it is typical for banks to keep a record of credit card statements for around 7 years. Even once an account is closed, electric records continue to show credit card transaction data. It is also possible for credit card users to access older transaction statements by contacting the credit card issuer. For consumer and commerce data providers, bank statements are a valuable source of historical credit card transaction data. Retailers and consumer-focused businesses purchase credit card transaction data because it shows consumer spending trends over this broad period ensures datasets provide a more comprehensive picture of a consumer. They can then use these insights for product development, supply chain management, and revenue forecasting.
What are typical Credit Card Transaction Data attributes?
Data attributes refer to what the dataset looks like. In other words, which kinds of information a data user will find there. For credit card transation data, the attributes of an API or database are usually the following:
- Private label payment
- Private label payment-void
Which types of credit cards are included in a Credit Card Dataset?
- Standard (Mastercard, Visa, Discover, AmEx)
- Pre-paid (Mastercard, Visa, Discover, AmEx)
- Corporate purchasing cards
- Private label cards
How is Credit Card Transaction Data typically collected?
Typically, credit card companies, merchants, and banks collect credit card transaction data at the point-of-sale. Real-time transaction data is then captured and passed on to credit card transaction data providers. Data providers anonymize personal customer data and use a credit card aggregator to de-identify the customer transaction and financial data collected from these sources, ensuring the data is secure. Providers then deliver the anonymized data via credit card transaction data APIs or databases which are to then be sold and used for data analysis.
How to buy Credit Card information?
Credit card data is for sale via the Datarade platform. Credit card data providers offer sample credit card transaction datasets, so you can test that the data fits your requirements before you buy a dataset or API subscription.
How is Credit Card Transaction Data typically Priced?
Typical pricing models include:
Pay per batch - pay for a single-use dataset of historical transaction data
Subscription fee - access a real-time API for a recurring fee
Custom quotes - tailored offering for your specific needs
Many businesses choose to sample transaction data before they buy credit card data. This allows them to assess the data quality and relevancy before they commit to a data purchase.
How much does Credit Card Transaction Data cost?
The cost of credit card transaction data varies - there are lots of different transaction data pricing models. For example, buying a one-off dataset may cost more than a data subscription, here you make regular payments to receive credit card data via a constant stream or feed.
What to ask a Credit Card Transaction Data Provider?
Questions to ask credit card data providers include:
- How often is the credit card data updated?
- Can the data be customized to meet the needs of my business? This will vary depending on the industry of your business: retail, ecommerce, D2C, etc.
- Will the data integrate with my existing business technologies? This could be your CRM system, as well as other data enrichment tools.
- Do you provide additional services, such as transaction data analytics or a credit card data model?
Who are the best Credit Card Transaction Data providers?
Finding the right Credit Card Transaction Data provider for you really depends on your unique use case and data requirements, including budget and geographical coverage. Popular Credit Card Transaction Data providers that you might want to buy Credit Card Transaction Data from are Above Data, A2A, QueXopa, Vumonic, and Multimedia Lists.
Where can I buy Credit Card Transaction Data?
Data providers and vendors listed on Datarade sell Credit Card Transaction Data products and samples. Popular Credit Card Transaction Data products and datasets available on our platform are QueXopa Debit & Credit Card Transaction Data (Spain) - Uniquely Refined Transactions Datasets by QueXopa, Credit Card Transaction Data: Global Coverage - Sales & Consumer Profiling by A2A, and Facteus Transaction Data - US Consumer Card Payments - Core by Facteus.
How can I get Credit Card Transaction Data?
You can get Credit Card Transaction Data via a range of delivery methods - the right one for you depends on your use case. For example, historical Credit Card Transaction Data is usually available to download in bulk and delivered using an S3 bucket. On the other hand, if your use case is time-critical, you can buy real-time Credit Card Transaction Data APIs, feeds and streams to download the most up-to-date intelligence.
What are similar data types to Credit Card Transaction Data?
Credit Card Transaction Data is similar to Point-of-Sale (POS) Data, Loyalty Card Data, Consumer Transaction Data, Debit Card Transaction Data, and Bank Transaction Data. These data categories are commonly used for Marketing and Credit Card Transaction Data analytics.