Visa has developed new intelligent analytics that could help fuel merchants prevent fraudulent debit and credit transactions at the pump.
The solution–Visa Transaction Advisor (VTA)–allows merchants to access real-time authorization risk scores to identify potentially fraudulent transactions made with lost, stolen or counterfeit cards. A recent test pilot of the new service showed a 23 percent drop in the rate of fraudulent transactions.
“Visa Transaction Advisor uses sophisticated analytics based on the breadth and scale of VisaNet data to flag the riskiest transactions,” Mark Nelsen, the vice president of risk products and business intelligence at Visa, said. “By working with fuel companies to understand their needs, we were able to create a new service that builds on Visa’s predictive analytics capabilities, providing fuel merchants with more intelligence to prevent fraud and improve their bottom line.”
Once a cardholders inserts their card, Visa analyzes past transactions, account status and approximately 500 other data sets to produce a risk score, which can then be used by merchants to perform further cardholder authentication.
The solution is available to merchants through participating acquirers in the U.S., such as Visa partner Vantiv. VTA uses existing message fields and pump software to reduce the impact on acquirers and merchants.
“Ease of implementation is a critical requirement whenever we’re talking about a new merchant service,” Donald Boeding, the president of merchant services at Vantiv, said. “Visa Transaction Advisor builds on existing payment infrastructure, is easy to implement and flexible enough to allow customization by merchants, which is why we are excited to be the first acquirer to offer it to our oil merchants.”