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Visa today announced enhancements to its authorization model, including indicators specific to automated fuel dispensers (AFD) transactions. The model can now pinpoint suspicious activity at a gas station and apply that to all transactions processed through that station.
The enhanced model also uses account velocity at AFDs compared to the account's normal behavior in the score determination. This can potentially increase the effectiveness of fraud detection in this segment by as much as 163 percent for credit transactions and 266 percent for debit transactions, Visa stated.
Across the board, enhancements to Visa's Advanced Authorization (VAA) technology will enable financial institutions to use the information to more reliably know which transactions to decline in real time, while allowing them to more confidently approve legitimate transactions to remove friction from payments for merchants and consumers alike, the credit card company added.
The VAA improvements are also poised to substantially reduce fraud where the physical Visa card is present, or in virtual environments such as online shopping.
"Cardholders, merchants and issuers all want to have confidence in the convenience and the security of every Visa transaction," said Mark Nelsen, Visa Inc.'s head of risk and authentication products. "The great improvements we've made in advanced authorization this year were designed to do just that: fight fraud and its costs to financial institutions and merchants, while also ensuring legitimate transactions are handled with the speed and convenience that consumers and merchants want."