Visa Prevents Approximately $25 Billion in Fraud Using Artificial Intelligence
Since pioneering AI in payments, continuous evolution of the technology in Visa Advanced Authorization helps drive commerce and consumer confidence
“One of the toughest challenges in payments is separating good
transactions made by account holders from bad ones attempted by
fraudsters without adding friction to the process,” said
For financial institutions, friction in the payment process can lead to
the abandonment of a payment card. A study by Javelin Strategy &
Research revealed more than half of cardholders affected by false
declines (51 percent) used a secondary payment card to complete the
purchase at the same merchant, which can push a competitor’s card to the
top of wallet.ii However, removing friction cannot come at
the expense of identifying and preventing fraud. As a survey by the
Visa Advanced Authorization is a layer of fraud prevention that can help drive down risk and fraud for financial institutions and retailers, and help reduce friction due to false declines for payment account holders. More than 8,000 financial institutions in 129 countries use Visa Advanced Authorization.
Preventing fraud near the speed of light
Visa pioneered using neural networks modeled after the human brain to power its AI platform to identify possible fraud. This delivers faster and deeper insights through previously unknown correlations. Delivered through Visa Advanced Authorization, retailers and financial institutions benefit from:
- Machine Learning models used for real-time examination of each transaction for indicators of fraud—looking at activities, patterns and more than 500 risk attributes—all in about one millisecond.
- Risk scoring, which Visa shares with the account holder’s financial institution, where the decision is made to either approve or decline the transaction, or flag the transactions for follow up with the account holder.
- The ability to identify good transactions even when made by new or infrequent shoppers, reducing the likelihood of false declines.
- Real-time authorization using integrated, global predictive analytics to identify and prevent fraud.
Visa has kept global fraud rates at historic lows—less than 0.1 percent—through a multi-layered approach of investing in human intelligence and technology like A.I.; empowering consumers and clients with tools, resources and control to manage risk; and setting governance processes to help businesses and regulators stay nimble.iv
“Consumers identified Visa as the most trusted company to provide financial services or payments among all payment networks and we believe it is due to Visa’s unrelenting focus on eliminating fraud and protecting the payment ecosystem,” said McSherry.v
Additional Risk Solutions Using AI
Visa champions security every day to protect the payment ecosystem and offers a portfolio of risk products and services that can help consumers, merchants and financial institutions prevent fraud. This includes Visa Risk Manager (VRM), Visa Consumer Authentication Services (VCAS) and CyberSource Decision Manager (DM), among others. For more information about Visa’s Risk solution portfolio, visit Visa Security.
- See how Visa’s artificial intelligence works to improve payment authorization in this video
- Learn more about Visa security in the Visa newsroom and Visa Blog
Follow Visa security updates on LinkedIn,
i For the 12 months ended
ii “Addressing the Threat of False Positive Declines” by
iii “The State of Retail Payments Report – Outlook for 2019”
iv Visa Global Fraud Data,
v “Omnichannel and Branch: The Current U.S. Consumer Banking