Page 88 - ITU-T Focus Group Digital Financial Services – Recommendations

ITU-T Focus Group Digital Financial Services
Recommendations

Title of recommendation Minimum standards for transaction verification
Working Group Consumer Experience and Protection

Theme Revocability
Audience for recommendation Regulators

Regulators should establish minimum client protective measures which providers must put in place for transac-
tion verification to help prevent mistaken transactions.

Research shows that poor user interfaces commonly cause transaction errors, and that these errors are difficult
for customers to reverse or resolve. Errors occur when customers do not understand the menu, have difficulty
navigating through multiple steps, and hurry to avoid being timed out. AFI also confirms that many customers’
lack of technological literacy produces erroneous transactions such as sending money to the wrong account
or paying the wrong bill. These errors are more common if menus do not display the recipient’s name when
the account or phone number is entered. Mystery shopping conducted by the ITU supports the finding that
customers often have difficulty resolving mistakes. These problems can reduce customer trust and confidence
in DFS and limit their usage due to fear of loss.

To reduce the risk of mistaken transactions, the BTCA Responsible Digital Payments Guidelines recommend
that DFS interfaces be clear and easy-to-use. CGAP identifies DFS providers that have designed interfaces and
processes to reduce keystroke errors by incorporating triggers to help customers confirm they are sending
money where they intended, such as a “check digit” or integration with address book to display the recipient’s
name before sending. DBBL in Bangladesh creates a customer’s account number by adding a check digit to the
end of the mobile number. Airtel Money in Uganda displays the recipient’s name when the customer inputs
the phone number.

To protect consumers and improve the reliability of DFS services, regulators should require providers to have
minimum standards for transaction verification built into their product design. The BTCA guidelines recommend
that a client receive proof of each trans action and have ready access to clear and understandable transaction
and account records. These records should ideally be provided digitally and in a form the client can keep or
access, such as a digital transaction history.

The GSMA Code of Conduct states that, “where feasible, providers shall only authorize customer transactions
in which the debiting and crediting of mobile money accounts is processed in real time.” This requirement
for real time transactions could also facilitate instant confirmation of whether the transaction went to the
correct recipient.

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