PYMNTS.com

Visa has rolled out internal data that indicates its artificial intelligence (AI)-based Advanced Authorization (VAA) security product has helped issuers prevent an estimated $25 billion in annual fraud. VAA is a risk management tool that monitors and evaluates transactions over VisaNet in real time to helps issuer "see" fraud as it happens and shut it down based on its ability to spot emerging fraud patterns and trends. Over 127 billion transactions flowed across VisaNet in 2018 between merchants and financial institutions on VisaNet last year, and AI was used to analyze 100 percent of those transactions. Each bit of analysis and fraud ranking takes about one millisecond -- so financial institutions can approve legitimate and bounce bad ones without the customer ever feeling a delay. "One of the toughest challenges in payments is separating good transactions made by cardholders from bad ones attempted by fraudsters without adding friction to the process," said Visa Senior Vice president and Global Head of Data Products and Solutions Melissa McSherry.