Visa Leverages Artificial Intelligence for Smarter Stand-in Processing - Digital Transactions

Refused transactions are frustrating enough for cardholders and merchants, but during a pandemic they could be especially nerve-wracking. Visa Inc. on Wednesday announced a new service for stand-in processing that the payments network says should yield faster and more accurate results when issuers' systems are down. The new Smarter STIP (for Stand-in Processing) technology, which will debut in October, relies on artificial intelligence and so-called deep learning to help reach go or no-go decisions during service interruptions. The new system, which builds on Visa's existing STIP service, has the potential to reduce declines by as much as 50% "in some cases," Visa says. Transaction approvals satisfy cardholders and merchants but also help preserve interchange revenue for issuers.