Having a card transaction declined at the checkout can be a frustrating and embarrassing occurrence. So much so that it can seriously damage brand loyalty – according to research by Mastercard, a third of us have withdrawn our custom from a retailer due to our cards being refused.
Often this is due to the transaction being incorrectly flagged as fraudulent in some way – the algorithms which make the call on whether a payment is valid have erred on the side of caution, and sometimes they get it wrong.
Aside from the inconvenience it causes us, the cost to businesses and the wider economy of these false declines is around $118 billion – an amount 13 times higher than the cost of actual card fraud.
But fear not because, once again, AI has come to the rescue. Through its Decision Intelligence and AI Express platforms, Mastercard has used predictive analytics powered by machine learning to cut the rate that this happens by 50%.
I had the chance to speak to Ajay Bhalla, the company’s president for global enterprise, risk and security, about how this technology works and how AI is now helping Mastercard achieve more of its strategic objectives.
Source : Forbes