Visa Inc. (NYSE:V) has unveiled three new AI-powered risk and fraud prevention solutions slated for launch in the first half of 2024. These innovations are set to become integral components of Visa Protect, an end-to-end portfolio aimed at bolstering payment security. Visa Protect is part of Visa’s comprehensive suite of value-added services, which encompasses issuing solutions, acceptance solutions, risk and identity solutions, open banking solutions, and advisory services.
The trio of solutions leverages Visa’s extensive expertise in AI technology. The first solution, Visa Deep Authorization, is a transaction risk scoring solution designed to enhance the management of card-not-present (CNP) payments, offering issuers improved defense against evolving digital fraud threats without disrupting digital transactions.
Expanding its AI-powered fraud risk management tools, Visa Advanced Authorization and Visa Risk Manager will now support non-Visa card transactions. This expansion enables issuers to consolidate fraud detection efforts into a single solution, thereby fortifying fraud defense mechanisms and reducing operational costs across different network schemes.
The third solution is a groundbreaking fraud prevention tool tailored for instant payment processes, including peer-to-peer digital wallets, account-to-account transfers, and instant payment systems managed by central banks. Developed using advanced deep learning AI, this solution delivers real-time risk scores, facilitating prompt identification and automatic termination of fraudulent transactions by financial institutions.
These initiatives underscore Visa’s commitment to combatting fraud in both immediate account-to-account and CNP payments, while also extending protection to transactions within and beyond Visa’s network. Moreover, this strategic move reflects Visa’s dedication to enhancing its risk and fraud solutions suite, further enriching its global value-added services portfolio, which currently comprises approximately 200 products.
The introduction of these solutions is expected to drive higher data processing revenues for Visa in the future, as businesses increasingly prioritize security in an era of rapid digitization. Visa’s ongoing investments in AI and fraud prevention capabilities, totaling $10 billion over the past five years, demonstrate its proactive stance in safeguarding its payment network. Collaborations, such as the partnership with Expel in 2023, further reinforce Visa’s commitment to cybersecurity and ensuring secure money movement worldwide.
Despite Visa’s recent share gains, the company remains focused on enhancing its security infrastructure. With the ever-evolving landscape of digital fraud, Visa’s new solutions are well-positioned to address the growing need for a secure payment ecosystem, offering peace of mind to businesses and consumers alike.
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