Payment giants battle the fear factor in agentic commerce

Visa and Mastercard are preparing for a world where your customers don't just shop online themselves, but use AI 'agents' to find products and handle payments. This shift, known as agentic commerce, presents a major security risk for retailers. If an AI bot makes a purchase on behalf of a human, how do you verify the transaction is legitimate? These new tools are designed to authenticate these digital assistants, ensuring that when an AI bot hits the 'buy' button in your store, it is actually authorized by the cardholder. For merchants, this means the checkout process is about to get more complex behind the scenes. Visa and Mastercard are collaborating with international partners to create a 'Know Your Agent' (KYA) protocol, similar to the banking industry's 'Know Your Customer' rules. This technology aims to prevent a new wave of fraud where malicious bots drain accounts or initiate unauthorized financing applications. As more consumers use AI to hunt for the best BNPL deals or financing rates, these security layers will become the backbone of your digital storefront. Implementing these standards early will help reduce chargebacks and ensure that automated sales are as secure as traditional ones.

Source: American Banker — Top News

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