Visa Unveils New AI Fraud Prevention Tools to Safeguard Digital Payments

Wednesday, Visa Inc V announced the expansion of its value-added services by introducing three new AI-powered solutions within the Visa Protect suite aimed at enhancing fraud prevention for account-to-account and card-not-present (CNP) payments. 

This suite is part of Visa’s extensive range of nearly 200 products across five key categories: Acceptance, Advisory, Issuing, Open Banking, and Risk and Identity. 

Visa’s commitment to combating fraud and securing transactions is backed by a $10 billion investment in technology and innovation over the past five years.

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Visa’s efforts in fraud prevention helped block $40 billion in fraudulent transactions in 2023.

The new additions to the Visa Protect suite include Visa Deep Authorization (VDA), designed to enhance risk scoring for CNP payments through advanced deep learning models; an expansion of Visa Advanced Authorization (VAA) and Visa Risk Manager (VRM) to include non-Visa card payments, making these AI-powered solutions accessible for a broader range of transactions; and a real-time protection service for immediate payments like P2P digital wallets and account-to-account transfers, utilizing AI to assess risk and prevent fraud instantaneously.

Meanwhile, Mastercard Inc MA and Paypal Holdings Inc PYPL have tapped AI to enhance fraud detection and reduce expenses, Bloomberg reports. 

Meanwhile, Mastercard Inc MA and Paypal Holdings Inc PYPL have tapped AI to enhance fraud detection and reduce expenses, Bloomberg reports. 

Mastercard is offering banks an AI-based risk detection tool to identify potential fraudulent transactions. At the same time, PayPal announced in January its plan to implement AI in its Venmo service to customize the online shopping experience for users.

Visa stock gained 27% in the last 12 months. Investors can gain exposure to the stock via SPDR Select Sector Fund – Financial XLF and IShares U.S. Financial Services ETF IYG.

Price Action: V shares are trading lower by 0.14% to $281.01 premarket on the last check Wednesday. 

Also Read: Affirm and Robinhood Make It To Top FinTech Stocks for 2024 – Analyst Says It Promises Growth for Average Americans

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Image: Shutterstock/ Tony Stock