Mastercard has introduced Decision Intelligence, a decision and fraud detection service. The solution uses artificial intelligence (AI) technology to help financial institutions increase the accuracy of real-time approvals of genuine transactions and reduce false declines.
This is the first use of AI being implemented on a global scale, directly on the Mastercard network.
“We are solving a major consumer pain point of being falsely declined when trying to make a purchase,” said Ajay Bhalla, President of enterprise risk and security, Mastercard. “By using AI technology on our global network, we’re helping financial institutions and merchants improve approval rates – and the consumer experience.
Current decision-scoring products are focused primarily on risk assessment, working within predefined rules. Building on other proprietary services, Decision Intelligence provides a predictive score to the issuer so they can incorporate that information into existing fraud mitigation efforts.
Alternatively, issuers can activate the holistic Mastercard tool, which makes data-driven, real-time decisions tailored to the account, including defined alert and decline thresholds.
The smart technology behind Decision Intelligence examines how a specific account is used over time to detect normal and abnormal shopping spending behaviours. In doing so, it leverages account information like customer value segmentation, risk profiling, location, merchant, device data, time of day, and type of purchase made.
Over the last few years, the industry has been increasingly focused on protecting payments and combating fraud, which is why striking the right balance in approving transactions and managing fraud is important.
Said Al Pascual, Senior VP, Research Director and head of fraud and security at Javelin Strategy & Research, “Applying machine learning to decision-scoring is a new way of creating a positive consumer experience, while also minimising fraud.”
The addition of AI as a core component of the Mastercard network will deliver an enhanced fraud score for every transaction. This new functionality can help improve the accuracy of real-time approvals of genuine transactions and reduce false declines. In specific verticals, like at petrol stations or ATMs, the information could be used in real-time to react to potential concerns much more quickly, reducing operational expenses like chargebacks.
This technology is a core feature on the enhanced World Elite platform and also supports all Mastercard brands and products across all markets.
This is the first use of AI being implemented on a global scale, directly on the Mastercard network.
“We are solving a major consumer pain point of being falsely declined when trying to make a purchase,” said Ajay Bhalla, President of enterprise risk and security, Mastercard. “By using AI technology on our global network, we’re helping financial institutions and merchants improve approval rates – and the consumer experience.
Current decision-scoring products are focused primarily on risk assessment, working within predefined rules. Building on other proprietary services, Decision Intelligence provides a predictive score to the issuer so they can incorporate that information into existing fraud mitigation efforts.
Alternatively, issuers can activate the holistic Mastercard tool, which makes data-driven, real-time decisions tailored to the account, including defined alert and decline thresholds.
The smart technology behind Decision Intelligence examines how a specific account is used over time to detect normal and abnormal shopping spending behaviours. In doing so, it leverages account information like customer value segmentation, risk profiling, location, merchant, device data, time of day, and type of purchase made.
Over the last few years, the industry has been increasingly focused on protecting payments and combating fraud, which is why striking the right balance in approving transactions and managing fraud is important.
Said Al Pascual, Senior VP, Research Director and head of fraud and security at Javelin Strategy & Research, “Applying machine learning to decision-scoring is a new way of creating a positive consumer experience, while also minimising fraud.”
The addition of AI as a core component of the Mastercard network will deliver an enhanced fraud score for every transaction. This new functionality can help improve the accuracy of real-time approvals of genuine transactions and reduce false declines. In specific verticals, like at petrol stations or ATMs, the information could be used in real-time to react to potential concerns much more quickly, reducing operational expenses like chargebacks.
This technology is a core feature on the enhanced World Elite platform and also supports all Mastercard brands and products across all markets.
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