Visa is using real-time AI to help financial institutions manage transaction authorisations during service outages and disruptions.
The Visa Smarter Stand-in Processing (Smarter STIP) uses deep learning to analyse past transactions before generating decisions to approve or decline transactions on behalf of issuers if their systems go offline.
Smarter STIP analyses past transactions down to the cardholder level so it does not rely solely on static rules applied across an entire card portfolio. Visa claims this gives it the potential to decrease transaction declines for cardholders by up to 50% in some cases.
"Consumers expect instant and uninterrupted access to their funds—failure to meet that expectation can be costly,” says Jack Forestell, chief product officer, Visa. “Stand-in processing has always been a vital assurance to our clients that when the unexpected occurs, we’ve got their back. By adding AI, that capability becomes smarter, stronger, and more dynamic.”
The technology will be available in October and has "generated interest from a range of financial institutions around the world," says Visa.