Mastercard Rolls out Artificial Intelligence across Its Global Network
November 30 2016 - 5:00AM
Business Wire
Decision Intelligence™ leverages machine
learning technology to increase approvals for genuine transactions
and deliver overall better consumer shopping experience
Mastercard today introduced Decision Intelligence, a
comprehensive decision and fraud detection service. The solution
uses artificial intelligence technology to help financial
institutions increase the accuracy of real-time approvals of
genuine transactions and reduce false declines.
This is the first use of AI being implemented on a global scale
directly on the Mastercard network.
Current decision-scoring products are focused primarily on risk
assessment, working within predefined rules. Decision Intelligence
is a radical new approach that goes much further. It takes a
broader view in assessing, scoring and learning from each
transaction. That score then enables the card issuer to apply the
intelligence to the next transaction.
“We are solving a major consumer pain point of being falsely
declined when trying to make a purchase,” said Ajay Bhalla,
president of enterprise risk and security, Mastercard. “By using AI
technology on our global network, we’re helping financial
institutions and merchants improve approval rates – and the
consumer experience.”
How It Works
Building on other proprietary services, Decision Intelligence is
a new way of solving an old problem using sophisticated algorithms
to provide a predictive score to the issuer, based on intelligent
analysis. They then incorporate that information into their
existing fraud mitigation efforts. Alternatively, issuers can
activate the holistic Mastercard tool, which makes data-driven,
real-time decisions tailored to the account, including defined
alert and decline thresholds.
The smart technology behind Decision Intelligence examines how a
specific account is used over time to detect normal and abnormal
shopping spending behaviors. In doing so, it leverages account
information like customer value segmentation, risk profiling,
location, merchant, device data, time of day, and type of purchase
made.
Delivering Value in Every Tap, Dip or Swipe
Over the last few years, the industry has been increasingly
focused on protecting payments and combating fraud, which is why
striking the right balance in approving transactions and managing
fraud is important.
“We estimate that in the U.S. alone, the value of false declines
is more than 13 times the total amount lost to actual card fraud,”
said Al Pascual, senior vice president, research director and head
of fraud and security at Javelin Strategy & Research. “Applying
machine learning to decision-scoring is a new way of creating a
positive consumer experience, while also minimizing fraud.”
The addition of AI as a core component of the Mastercard network
will deliver an enhanced fraud score for every transaction. This
new functionality can help improve the accuracy of real-time
approvals of genuine transactions and reduce false declines. In
specific verticals, like fuel or ATM, the information could be used
in real-time to react to potential concerns much quicker, reducing
operational expenses like chargebacks.
This technology is a core feature on the enhanced World Elite
platform and it also supports all Mastercard brands and products
across all markets.
About Mastercard
Mastercard (NYSE:MA), www.mastercard.com, is a technology
company in the global payments industry. We operate the world’s
fastest payments processing network, connecting consumers,
financial institutions, merchants, governments and businesses in
more than 210 countries and territories. Mastercard products and
solutions make everyday commerce activities – such as shopping,
traveling, running a business and managing finances – easier, more
secure and more efficient for everyone. Follow us on Twitter
@MastercardNews, join the discussion on the Beyond the Transaction
Blog and subscribe for the latest news on the Engagement
Bureau.
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MasterCard IncorporatedJane Khodos,
+1-914-327-0820Jane.Khodos@mastercard.com
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