As a result, financial institutions working with Fiserv, a global provider of financial services technology solutions, ae enabled to increase the accuracy of real-time approvals of genuine transactions and reduce the number of false declines. Decision Intelligence uses artificial intelligence technology to provide a predictive score by applying thousands of data points and modelling techniques to each transaction - helping issuers make more informed authorization decisions.
The technology behind Decision Intelligence examines how a specific account is used over time to detect normal and abnormal spending behaviours. It leverages information such as customer value segmentation, risk profiling, location, merchant, device data, time of day, and type of purchase made.
According to the company’s official press release, Fiserv research shows that the number of active cards after two or more false positive denials drops by an average of 20% over a six-month period following the last false positive denial. This suggests that around 20% of cardholders may stop using the card altogether after two or more false declines. Moreover, the average monthly spend per card after two or more false positive denials drops by 15% on average over a six-month period after the last false positive denial, as compared to cards that did not experience any false declines.
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