14 June 2005
Credit card provider Visa USA has developed a new anti-fraud system that is being heralded as a major force in preventing check-out fraud in the future.
It is hoped the Advanced Authorisation system will cut merchant check-out fraud by $164 million, and will use neural networks to provide accurate risk ratings for every transaction.
This means a risk rating would be sent from the merchant at the point of sale to the card's issuer. The issuer would then recommend to allow the transaction to continue or for it to be rejected.
Steve O'Connell, risk manager, Merrill Lynch, said: "Advanced Authorization gives us an accurate risk score for every transaction, which has successfully helped us refer more fraudulent transactions and approve transactions that otherwise may have been referred or declined."
It also means fraud analysts do not have to investigate every case, allowing them to focus on cases where the risk of fraudulent activity is higher.
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