Fiserv, MasterCard team to debut AI-based transaction decisioning solution
Fiserv Inc., a provider of financial services technology solutions, has become the first processor to offer MasterCard Decision Intelligence, a comprehensive decision and fraud detection service, according to a press release.
The service can help financial institutions increase the accuracy of real-time approvals of genuine transactions, reduce the number of false declines and improve the overall cardholder experience, Fiserv said.
Decision Intelligence uses artificial intelligence to arrive at a predictive score, applying thousands of data points and sophisticated modeling techniques to each transaction to help issuers make more informed authorization decisions.
The AI solution differs from other decision-scoring products in that it is able to assess, score and learn from each transaction. Acquired intelligence can then be applied to the next transaction, the release said.
“Minimizing the risk of financial losses while avoiding declining genuine consumer transactions requires delicate balance,” Patrick Davie, vice president of card services at Fiserv, said in the release. “False declines can damage the relationship with cardholders, so evaluating multiple factors, including information about the consumer, merchant and issuer, throughout the shopping experience can enhance that cardholder experience and approve more genuine transactions, without increasing risk.”
Fiserv said its research suggests that the average monthly spend per card after two or more false-positive denials drops by an average of 15 percent over the following six-month. Further, approximately 20 percent of cardholders might stop using a card altogether after two or more false declines, the company said.