Banks generally keep a record in the system of the "First Transaction Date" for a card.
The first transaction date is automatically populated by the online authorization system.
So under what circumstances is the first transaction date updated?
First, an authorization transaction (for example, an ATM cash withdrawal or a POS sale) must be carried out with the relevant card. The First Transaction Date is updated the moment the first authorization request comes in.
Is the First Transaction Date updated with every transaction?
For the First Transaction Date to be updated, the transaction must come through authorization. It is not updated for transactions that do not come through authorization. (For example, PIN setting)
So what is the First Transaction Date used for?
This information, which is very important in banking, is used in general usage reports, product activation status, and fraud detection steps.
General Usage Reports:
How many days after a product is delivered to the customer they start using their card is a matter that banks care about and track closely. The number of days after card delivery that a customer begins using the card is derived from the "First Transaction Date" information.
Product Activation Status:
Banks generally use the First Transaction Date as the date on which a product started being actively used. In general reporting, products that have a First Transaction Date populated and are in Open status are classified as active products.
In Fraud Transaction Scenarios:
Since lost/stolen reissue transactions generally represent risk, cards reissued due to being lost or stolen are always cards that banks pay close attention to and monitor carefully.
In fraud transaction scenarios, a rule written as "Flag the first transaction after a card is reissued due to loss/theft and send it to the fraud analyst as an alert" treats the moment the card's First Transaction Date is updated as the first transaction. This provides the opportunity for a detailed review of the first transaction made with such cards.
Do not underestimate the First Transaction Date, remember that it matters :)
