Visa says its solution prevents $25 billion in fraud annually

Visa Advanced Authorization helps drive commerce and consumer confidence

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Visa says its solution prevents $25 billion in fraud annually. Source: shutterstock.com

Visa announced a new analysis showing Visa Advanced Authorization (VAA) using AI helped financial institutions prevent an estimated $25 billion in annual fraud.

VAA is a comprehensive risk management tool that monitors and evaluates transaction authorizations on the Visa global payment network, VisaNet, in real time to help financial institutions 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 analyze 100% of the transactions, so financial institutions can approve legitimate purchases while quickly identifying and preventing fraudulent transactions.

For financial institutions, friction in the payment process can lead to the abandonment of a payment card. A study by Javelin Strategy & Research revealed more than half of cardholders affected by false declines (51%) used a secondary payment card to complete the purchase at the same merchant, which can push a competitor’s card to the top of wallet. However, removing friction cannot come at the expense of identifying and preventing fraud. As a survey by the National Retail Federation and Forrester discovered, the top payment-related challenge faced by retailers is fraud, cited by 55% of those surveyed.iii

Visa claims VAA 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 Authorization.

SEE ALSO: How to protect your online store

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