Visa has announced that its AI-powered Visa Advanced Authorisation (VAA) solution assisted financial institutions with the prevention of around US$25bn in annual fraud.
VAA monitors transactions and uses AI to evaluate patterns or inconsistencies that could indicate fraudulent behaviour.
Highlighting not only the success but also the frictionless nature of the solution, Visa noted in its press release that, through the VisaNet platform, VAA analysed over 127bn transactions last year with each process taking around one millisecond.
The AI analysis’s low margin for error benefits financial institutions through the mitigated risk of a falsely declined payment leading to the use of a competitor’s card.
Visa noted that a study from Javelin Strategy and Research found that 51% of cardholders revert to an alternative payment method during a transaction that featured a false decline.
"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, SVP and Global Head of Data, Risk and Identity Products and Solutions at Visa, in the press release.
"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."