PURCHASE, N.Y.—To strengthen payments security and reduce the number of transactions wrongly declined, Mastercard is introducing artificial intelligence (AI) into its global network.
Mastercard’s new Decision Intelligence is a service that uses artificial intelligence to learn from every transaction it monitors. Decision Intelligence replaces the systems that focus on risk assessment based on pre-defined rules, Computer Weekly explained.
Decision Intelligence examines how a specific account is used over time to detect normal and abnormal shopping spending behavior. Computer Weekly reported that Javelin Strategy & Research data shows that the value of false declines is more than 13 times the total amount lost to actual card fraud.
“We are solving a major consumer pain point of being falsely declined when trying to make a purchase,” Ajay Bhalla, president of enterprise risk and security at Mastercard, told Computer Weekly. “By using AI technology on our global network, we’re helping financial institutions and merchants improve approval rates – and the consumer experience.”
Al Pascual, senior vice-president, research director and head of fraud and security at Javelin Strategy & Research, told the publication that applying “machine learning to decision scoring is a new way of creating a positive consumer experience, while also minimizing fraud.”