42% of Issuers Say AI Has Cut Fraud Losses by at Least $5 Million

Artificial intelligence is no longer a luxury for lenders; it is now a critical tool for protecting the bottom line. For the retailers and operators who rely on these lenders to approve customer applications, the news is promising. New data shows that 42% of payment card issuers have used AI to slash fraud losses by at least $5 million. This technological shift means lenders are becoming much better at distinguishing between a risky fraudster and a legitimate customer who wants to make a purchase. In the past, strict fraud filters often led to 'false positives,' where honest customers were declined at the point of sale. This frustrated shoppers and cost you sales. Now, lenders are using real-time data to make smarter decisions during the transaction. This improves the overall health of the financing ecosystem. When lenders lose less money to fraud, they can maintain more competitive rates and broader approval margins for your customers. As an operator, you should expect your financing partners to lean more heavily into AI. This will likely lead to smoother checkouts and fewer headaches regarding disputed charges or identity theft at your registers.

Source: PYMNTS

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