AI-Based Risk & Fraud Prevention: A Glance at Visa’s New Solutions

The modern market is full of novel digital solutions that optimize daily processes for businesses and consumers alike. However, while fintech tools actively evolve, so do fraudulent practices. In response to these unwanted shifts, payment service providers are hopping on the AI trend and introducing new techniques to safeguard sensitive data and promote transaction security.

A prominent example of an organization utilizing this strategy is Visa, one of the world’s leading payment technology companies, which has recently added three AI-based services aimed at risk and fraud prevention. Keep reading to find out what value they bring to businesses!

What Is Visa’s Take on Payment Innovation?

As you probably know, Visa operates one of the world’s largest retail electronic payments networks. It connects consumers, businesses, financial institutions, and governments across more than 200 countries and jurisdictions.

Besides, Visa has also dedicated over $10 billion worth of investments in technology and innovation over the past 5 years, with Artificial Intelligence-based solutions being among the top areas of focus. Read on to learn more about its latest AI-driven tools!

Visa’s New AI-Driven Solutions Explained

As part of its effort to be at the forefront of payment security innovation, on March 27, 2024, Visa announced the release of three AI-powered business services, namely:

• Visa Deep Authorisation (VDA). Once launched, this solution will utilize a deep learning recurrent neural network (RNN) model and vast amounts of contextual data to enhance the management of Card-Not-Present (CNP) payments.
• The expansion of Visa Advanced Authorization (VAA) and the Visa Risk Manager (VRM). This update will enable issuers to consolidate all their fraud prevention efforts into a unified solution, streamlining their operations and reducing associated costs.
• Real-Time, Account-to-Account Payment Protection. This service, powered by advanced deep learning AI detection models, will display transaction risk scores in real time, which is expected to significantly decrease fraud cases linked to P2P digital wallets, A2A transfers, and instant money transfer systems facilitated by central banks.

All these innovative solutions are set to go live in the first half of 2024. However, the availability of services will vary from one market to another.

Part of the Bigger Picture: What Is the Visa Protect Suite?

The newly introduced AI-based services listed above are part of the Visa Protect Suite, which currently consists of almost 200 products spanning five categories:

• Acceptance. Visa is committed to enhancing payment acceptance by providing merchants with tools tailored to boost authorization rates and reduce friction at checkout.
• Advisory. The payment industry giant also offers consultancy services that focus on sharing strategic insights, industry best practices, and actionable tips to help companies safeguard their operations.
• Issuing. As one of the key players in the issuance of payment cards, Visa aims to provide FIs with advanced capabilities to protect cardholder data and prevent unauthorized transactions.
• Open banking. By providing secure APIs and interoperable platforms, Visa enables banks, fintechs, and third-party PSPs to create innovative payment solutions while adhering to stringent security standards and regulatory requirements.
• Risk and identity. Visa’s risk and identity tools utilize a wide range of forward-looking technologies, from biometrics and behavioral analytics to multi-factor authentication and real-time transaction monitoring.

By leveraging the numerous possibilities offered by the Visa Protect Suite, businesses can effectively enhance their resilience against emerging threats, streamline their operations, and deliver superior payment experiences to customers worldwide.

Will Visa Roll Out More AI-Powered Payment Solutions?

As of now, Visa has not uncovered any additional plans to release other AI-driven payment solutions. However, it is safe to assume that the industry leader will be working on more developments based on this technology.

After all, there is still a lot of untapped potential in the Artificial Intelligence field, so it is only natural that large fintech organizations will keep exploring it to unlock new possibilities for enhancing their services and security measures. This includes aspects like fraud detection, authentication, predictive analytics, user experience, and beyond.

Therefore, in the coming years, as AI continues to mature and evolve, we can expect Visa and other forward-looking companies to pioneer innovations that may reshape the way we transact and ensure a safer and more seamless payment experience for all.