Science & Technology

Visa announced AI solution to reduce number of declined transactions

Smarter STIP will be available in October 2020

Visa AI

Visa announced AI solution to reduce number of declined transactions. Source:

Visa has announced Visa Smarter Stand-in Processing (Smarter STIP), its AI-powered tool helping financial institutions manage transaction authorizations during service disruptions.

Smarter STIP uses deep learning to analyze past transactions. It also approves and declines transactions on behalf of issuers in case their systems go offline.

Consumers expect instant and uninterrupted access to their funds - failure to meet that expectation can be costly. Stand-in processing has always been a vital assurance to our clients that when the unexpected occurs, we’ve got their back. By adding AI, that capability becomes smarter, stronger, and more dynamic
Jack Forestell, executive vice president and chief product officer, Visa

The report highlights that service downtime is disruptive for financial institutions and their customers. And when stand-in processing isn’t in place, the potential impacts can be serious.

For instance, lost revenue due to failed transactions, poor cardholder experience. All of that results in call volume spikes to customer service centers, damage to reputation, and scrutiny from regulators.

We’ve reported that Visa has collaborated with the US-based NGO Nacha to test Phixius, a payment-information exchange platform. Phixius helps credentialed service providers share and manage e-payments information, making pre and post payments processing more efficient and secure than current ones.


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