The Advanced Authorization platform has been developed in an effort to drive down an estimated $164m in fraud losses over the next five years.
According to Visa, the new system works by detecting coordinated attacks on multiple accounts in real time. When a Visa card is swiped, the program provides the card issuer with a rating of that transaction’s potential for fraud. The issuer then sends an immediate response back to the merchant indicating whether to accept or decline the transaction.
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, said Steve O’Connell, risk manager, Merrill Lynch. In addition, Advanced Authorization has created operational efficiencies for our team because our fraud analysts do not have to investigate every case and can concentrate their efforts on the riskier transactions which are more likely to be fraudulent.
