Visa announced on Wednesday a number of changes to its Advanced Authorization technology designed to improve its ability to detect electronic payments fraud, allowing financial institutions to better determine which transactions to decline in real time.
“Cardholders, merchants and issuers all want to have confidence in the convenience and the security of every Visa transaction,” Mark Nelsen, the head of risk and authentication products at Visa, said. ”The great improvements we’ve made in Advanced Authorization this year were designed to do just that: fight fraud and its costs to financial institutions and merchants, while also ensuring legitimate transactions are handled with the speed and convenience that consumers and merchants want.”
Visa has added more transactional history data, along with new neural networks intended to analyze the data. The account profile is part of a risk score assigned to a given transaction that is then forwarded to the issuer to make an authorization decision, thereby improving fraud detection by as much as 130 percent for debit and 175 percent for credit.
The enhanced model also includes other indicators, and its network is able to identify suspicious activity. Additionally, the model allows Visa to pinpoint suspicious activity to reduce fraud payments and increase fraud detection.