Nearly 9 in 10 Card Issuers Turn to AI to Stop Fraud Without Blocking Sales

Financial institutions are shifting how they handle transaction security, and it is good news for your checkout conversion rates. Currently, nearly 90% of card issuers are doubling down on AI to improve fraud detection. For retailers, the most important takeaway is that these upgrades aim to reduce 'false declines.' This happens when a legitimate customer's purchase is blocked by an over-cautious legacy security system, often leading to a lost sale and a frustrated customer. Banks are now moving AI processing closer to the moment of transaction. By using real-time scoring, they can better distinguish between a fraudster and a loyal customer making an unusual purchase. According to the data, half of issuers view fraud scoring as their top priority. This transition means your customers are less likely to experience payment friction at the point of sale. For operators, this technology helps bridge the gap between security and sales. While you focus on the customer experience, your payment partners are becoming more precise. As these AI tools become standard, you can expect higher authorization rates. This is especially true for high-ticket items or online transactions that typically trigger higher fraud alerts. The end goal for the industry is 'invisible' security that protects your bottom line without getting in the way of a swipe or click.

Source: PYMNTS

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