How AI and machine learning are helping to reduce transaction fraud and improve merchant monitoring

Transaction fraud is a continual challenge for acquirers. Many good transactions are identified as fraudulent, potentially costing acquirers a significant amount of money and hurting merchants’ bottom lines. It also affects customers who aren’t happy when their order is declined and the credit card issuers who lose the interest on those transactions. If false declines are too high, customers may stop shopping with those merchants, leading merchants to switch acquirers. Together, these results cost acquirers tens of millions of dollars.

Fraud detection has become more streamlined thanks in large part to technology such as artificial intelligence (AI). Knowing where to start and what to look for is key, and having a better understanding of merchant and transactional fraud monitoring is a good starting point.

Acquirers also need to balance revenue growth with assessing the risk of ongoing and newly onboarded merchants. Acquirers have a limited number of resources to devote to manual investigations of potentially fraudulent merchants. New merchant monitoring systems rank the risk level of each merchant to help prioritize investigations and supplement the efficacy of enterprise risk management programs.

Download the white paper to learn how enriched AI solutions for transaction fraud and merchant monitoring are helping acquirers process more transactions, lose less money and improve the customer experience.