Financial services, Technology

Visa’s AI-powered platform prevents $25 billion in annual fraud

Visa has announced that its AI-based Visa Advanced Authorisation (VAA) has helped financial institutions prevent an estimated $25 billion in annual fraud.

According to the digital payments platform, VAA is a comprehensive risk management tool that monitors and evaluates transaction authorisations on the Visa global payment network, VisaNet, in real time to help financial institutions promptly identify and respond to emerging fraud patterns and trends.

Visa processed more than 127 billion transactions between merchants and financial institutions on VisaNet last year and employed AI to analyse 100 percent of the transactions—each in about one millisecond—so financial institutions can approve legitimate purchases while quickly identifying and preventing fraudulent transactions.

“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 Melissa McSherry, senior vice president and global head of Data, Risk and Identity Products and Solutions, Visa.

“Visa was the first payment network to apply neural network-based AI in 1993 to analyse the riskiness of transactions in real time, and the impact on fraud was immediate. By striking the right balance between human expertise and technology innovation, we continue to evolve our capabilities as new AI breakthroughs expand the realm of what’s possible,” said McSherry.

Visa Advanced Authorisation 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 Authorisation.

 

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