In the dynamic landscape of credit card processing and merchant accounts, staying ahead of fraudulent activities is paramount. Businesses face challenges in securing payment transactions, necessitating the adoption of advanced tools. Visa, a global leader, has harnessed the power of AI to empower merchants in this ongoing battle. In this article, we will delve into Visa’s innovative Merchant Risk Intelligence Suite and other cutting-edge solutions that redefine the way businesses handle payment processing.¹
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Visa’s Merchant Risk Intelligence Suite
Visa, collaborating with over 8,000 financial institutions globally, addresses fraud prevention through its Merchant Risk Intelligence Suite (VMRI). This tool employs advanced analytics, enabling merchants to analyze transaction data against benchmarks, identify strengths, and rectify shortcomings.² Through VMRI, businesses gain valuable metrics such as authorization rates and fraud rates, leading to improved operations and increased profitability.
Driving Transactions with Risk Intelligence Tools
While VMRI provides a long-term overview, Visa’s Advanced Authorization (VAA) tackles the real-time challenge of detecting individual fraudulent transactions.² VAA’s comprehensive risk management monitors card-not-present transactions globally, identifying potential attacks and helping issuers decline suspicious transactions. Alongside VAA, Visa’s Cybersource Decision Manager and CardinalCommerce authentication solutions use machine learning to optimize fraud strategies ¹, offering a holistic approach to risk management.
Mitigating E-Skimming
As electronic skimming becomes a prevalent threat, Visa introduces its eCommerce Threat Disruption (eTD) service.¹ This system analyzes merchant websites for malware, providing guidance on removal when a compromise is detected. Visa’s proactive approach with eTD has uncovered significant security breaches, protecting businesses from potential losses and saving millions.
Case Study: Transforming Merchant Performance
A compelling case study illustrates the impact of Visa’s solutions on a struggling digital merchant. Initially facing high fraud rates, the business identified weaknesses in authentication and representment practices through VMRI. With targeted improvements and intensified authentication, the merchant witnessed a 10% increase in approval rates, a 30% reduction in fraud rates ², and decreased representment rates, transforming its standing in the industry.
The Power of AI in Fraud Prevention
Dustin White, Chief Risk Data Officer at Visa, emphasizes the effectiveness of Visa’s tools against the daily two million fraud attempts. Visa’s investments in advanced analytics and artificial intelligence have kept fraud rates at a minimal 7 cents per $100 in merchant transactions.³
Visa’s Proactive Approach with eTD
Visa’s eTD system goes beyond just identifying compromises ³; it actively assists businesses in removing malware, limiting potential downtime and financial losses. The collaborative effort with service providers ensures a broader impact, as demonstrated in an instance where a single tip led to the identification and removal of malware affecting one-third of businesses.
In conclusion, Visa’s advanced analytics solutions redefine payment processing, offering tangible benefits to merchants. Through tools like VMRI, VAA, and eTD, businesses can enhance operations, boost profitability, and proactively address challenges.³ As the payment processing landscape evolves, Visa stands at the forefront, safeguarding businesses against the ever-present threat of fraud.
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Footnotes:
1. Payments Journal (2024) – Visa Bets on Advanced Analytics, AI to Help Merchants Mitigate Fraud. Advanced Analytics, AI to Help Merchants Mitigate Fraud – PaymentsJournal
2. CSO Online (2019) – How Visa Fights Fraud. How Visa fights fraud | CSO Online
3. Visa Newsroom (2022) – Visa Press Release: Advanced Authorization and Fraud Prevention Visa Prevents Approximately $25 Billion in Fraud Using Artificial Intelligence | Visa