On-demand decisioning functionality will help Mastercard’s banking partners gain more control over transaction authorization processes, reduce false declines, and improve fraud prevention.
Mastercard has announced the launch of its new service called On-Demand Decisioning (ODD), designed to give financial institutions more flexibility in how they handle payment approvals and declines.
The on-demand decisioning system lets issuers set their own rules directly on Mastercard’s network, so they can decide in real time whether to approve a transaction themselves, let Mastercard automatically respond on their behalf, or have Mastercard double-check and adjust their decision in real time before it reaches the merchant.
At its core, ODD is a rules-based engine that banks can tailor to match their policies and customer strategies. For example, it could prioritize approvals for premium cardholders or reduce unnecessary false declines when cards are reissued. Instead of one-size-fits-all rules, issuers can decide which transactions they want Mastercard to handle and which they want to control directly. The new flexible system aims to reduce payment disruptions, improve fraud prevention, and create a smoother experience for both consumers and merchants.
The service was unveiled at Mastercard’s RiskX summit in Rome, the company’s cybersecurity innovation conference. Financial institutions such as Porto Bank have already tested it, reporting that ODD helped protect the experience of high-value customers while requiring little extra operational effort.
ODD will be rolled out globally, except for India, from October 1.
