Sixty Percent of US Acquiring Banks Use AI to Manage Transaction Fraud as Digital Volumes Surge
The banking industry has been faster than most in adopting artificial intelligence (AI). Banks have found that AI is extremely useful in fighting fraud because it helps to flag suspicious transactions in real time. This feature is especially useful in the high-volume business of processing card transactions for retailers and other merchants. AI helps acquiring banks and merchants determine appropriate responses when suspicious transactions are flagged.
These are among the key findings from AI In Focus: Waging Digital Warfare Against Payments Fraud, a collaboration between PYMNTS and Brighterion, a Mastercard company. We examine how acquiring banks use AI and effective merchant monitoring to combat credit, debit and prepaid card fraud. The playbook is based on a survey of 104 executives from acquiring banks in the United States from Sept. 22 to Oct. 14. The executives have leadership responsibilities and a deep understanding of the merchant debit, credit and prepaid card acceptance business. Their expertise covers risk management, transaction fraud, fraud detection/analysis and merchant monitoring.