Visa’s advanced authorisation technology has prevented $25bn in annual fraud

Visa has revealed its advanced authorisation technology, which is powered by AI, has helped institutions prevent around $25bn in annual fraud, according to its latest analysis.

The Visa Advanced Authorization (VAA) solution is a risk management tool which monitors and evaluates transaction authorisations on the Visa global network in real-time to help financial institutions identify and respond to emerging fraud patterns and trends.

Last year, the payments processer facilitated over 127 billion transactions between merchants and financial institutions. Its VAA analysed all of these, each taking around a millisecond, to help accelerate fraud identification, it said.

Visa’s platform is a layer of fraud prevention which helps to lower risk and fraud for financial institutions while reducing the number of false declines for payment account holders.

Visa senior vice president Melissa McSherry said, “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.

“Visa was the first payment network to apply neural network-based AI in 1993 to analyze 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.”

Earlier in the year, Sri Lanka-based Hatton National Bank (HNB) formed a deal with Visa’s CyberSource solution. Through the agreement, HNB will integrate the solution into its merchant network in order to make use of its enhanced e-commerce and m-commerce functionality to build a secure payment experience.

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