A Blog by Jonathan Low

 

Sep 22, 2020

Visa Reveals AI-Approved Credit Card Transactions As Pandemic Continues

As contactless transactions continue to prevail, Visa is introducing a deep-learning, AI-based model to evaluate and approve or disapprove credit card transactions.

While it may speed some interactions, there will understandably be concern that yet another black box with ill-defined or non-existent rights of appeal is making credit card decisions for consumers. JL

Sara Castellanos reports in the Wall Street Journal:

Visa has developed a more advanced artificial intelligence system that can approve or decline credit and debit transactions on behalf of banks. Visa and the financial institution define the rules for the model to be able to determine whether a particular transaction should be approved.The deep-learning model is trained to sift through billions of data points of cardholder activity to define correlations on its own. In tests, the deep-learning AI model was 95% accurate in mimicking the bank’s decision on whether to approve or decline a transaction
Visa Inc. said it has developed a more advanced artificial intelligence system that can approve or decline credit and debit transactions on behalf of banks whose own networks are down.
The decision to approve or deny a transaction typically is made by the bank. But bank networks can crash because of natural disasters, buggy software or other reasons.
Visa said its backup system will be available to banks who sign up for the service starting in October.
The technology is “an incredible first step in helping us reduce the impact of an outage,” said Rajat Taneja, president of technology for Visa.
The financial services company is the largest U.S. card network, as measured both by the number of cards in circulation and by transactions.
The new service reflects the growing use of AI in banking. Banks are expected to spend $7.1 billion on AI in 2020, growing to $14.5 billion by 2024, on initiatives such as fraud analysis and investigation, according to market research firm International Data Corp.
The service, Smarter Stand-In Processing, uses a branch of AI called deep learning that roughly mimics neurons in the human brain and is an underlying technology powering self-driving cars, voice-enabled digital assistants and facial recognition.
It was built with Visa’s in-house data scientists and software engineers. The company has one patent related to the technology and has applied for two others.
Network disruptions and outages affect several million credit and debit card transactions annually, often causing transactions to be unnecessarily declined, Mr. Taneja said.
When that happens, cardholders may have to call their bank for assistance. Merchants and banks could lose revenue if sales aren’t completed.
“There’s a business impact because of the transactions flowing through, but our motivating driver was consumer experience,” Mr. Taneja said.
Smarter STIP kicks in automatically if Visa’s network detects that the bank’s network is offline or unavailable.
The older version of STIP uses a rules-based machine learning model as the backup method to manage transactions for banks in the event of a network disruption.
In this approach, Visa’s product team and the financial institution define the rules for the model to be able to determine whether a particular transaction should be approved.
“Although it was customized for different users, it was still not very precise,” said Carolina Barcenas, senior vice president and head of Visa Research.
Technologists don’t define rules for the Smarter STIP AI model.
The new deep-learning model is more advanced because it is trained to sift through billions of data points of cardholder activity to define correlations on its own.
For example, it could automatically learn that a particular cardholder transaction was normal and should be approved based on historical data about that person, such as the location of the merchant in relation to the cardholder and the time of day they are shopping.
“The model finds a lot of those relationships, and it’s creating that intelligence that in the past, the analysts had to do,” Ms. Barcenas said. “It also outperforms.”

In tests, the deep-learning AI model was 95% accurate in mimicking the bank’s decision on whether to approve or decline a transaction, she said. The technology more than doubled the accuracy of the old method, according to the company.
The two versions will continue to exist but the more advanced version will be available as a premium service for clients.
UBS Card Center AG, a subsidiary of Swiss bank UBS Group AG, has been working with Visa since 2018 to design and test the technology and is expected to be one of its first users.
Disruptions on UBS Card Center’s network sometimes occur because of telecommunications failures or natural disasters, said Anindya Mukherjee, executive director and head of strategic initiatives at UBS Card Center.
Visa’s technology is an innovative stopgap measure for approving transactions during such outages, he said.
“Each of these has the potential to disrupt our business,” he said. “Even the most robust systems actually benefit from redundant layers of backup technology.”

32 comments:

kashifkhatri said...

Reviews of the Top 6 Cuckold Dating Sites, best cuckold sites Are you cuckold singles looking for like minded cuckold couples for making your cuckold dating fantasy? Let a husband watches both of you and his wife doing sex

Anonymous said...

I would love to see Hair Salon Calgary as a title for some of the content on this blog.

sana mirza said...

Ink splashing technique: making nonsense excuses Delay the withdrawal time as much as possible, and then go! Typical type of 카지노먹튀

sana mirza said...

Get Pokémon Trading Card Game news, information, and strategy, test out Sun ... Learn greater about the latest Pokémon TCG expansion with information about a handful of cards. . Pokémon TCG Product Gallery. yugioh products

sana mirza said...

I cobbled this recipe collectively from a myriad of online recipes. I could not find a extra veggie-friendly option, and had BBQ sauce withinside the fridge. lovely recipes

sana mirza said...

If you need to boost your enterprise to the top, you want to have an powerful net advertising strategy. Finding the proper Search Engine Optimization enterprise will assist your enterprise develop quickly. If you choose the wrong search engine marketing firm, your enterprise can be out of thousands of dollars. With such a lot of search engine marketing groups domestically promoting search engine marketing services, how do you're making the right choice? https://sandiegoseoservice.org

sana mirza said...

The make of the earring is top notch. The diamonds clarity is excellent . My fiancé absolutely loved them and the fact that the earring are screw back provide the extra security that they won't fall out .

sana mirza said...

Buy buddha bear carts. BLU These buddah bear Cannabis Cartridges are the best. Fresh out of the box, the heady fragrance is exceptional and strong. No different fillers are added….no P/G no V/G and no dilutants.

sana mirza said...

Buy buddha bear carts. BLU These buddah bear Cannabis Cartridges are the best. Fresh out of the box, the heady fragrance is exceptional and strong. No different fillers are added….no P/G no V/G and no dilutants.

sana mirza said...

Buy Chronic carts to your leisure purposes? We are right here 24/7 prepared to serve you with the pleasant objects and you may have a outstanding fun. We have were given the best variety of the CHRONIC CARTS, so some thing you want you simply upload the whole thing on cart and make the pleasant use of the same. Buy CHRONIC CARTS USA, UK, Australia, Canada and Europe.

sana mirza said...

PG slot games If you are talking about online slots games, pg slots free credit, try to play Customers will be able to play for free without deposit and be able to withdraw 100% sure. สล็อต pg เครดิตฟรี ไม่ต้องแชร์

sana mirza said...

az jewelry and loan Jewelry and Loan prides itself on delivering exceptional customer service by way of pawn loans (short-term collateral loans), merchandise sales, and purchase of items for fair market value.pawn my watch

service said...

Yes, I am entirely agreed with this article, and I just want say that this article is very helpful and enlightening. I also have some precious piece of concerned info !!!!!!Thanks. Advanced-Medicine

jacky kona said...

amazing information sharing .. I am very happy to read this text .. Thanks for giving us undergo information. Remarkable fine. I recognize this submit. I excessive respect this put up. It’s tough to discover the coolest from the horrific once in a while, however i assume you’ve nailed it! Could you mind updating your weblog with extra information? This post might be in which i were given the most useful facts for my studies. It appears to me they all are genuinely tremendous. Thank you for sharing. Notable! It sounds exact. Thank you for sharing.. 메이저놀이터

Levis Kohn said...

i do don't forget all the standards you’ve brought to your publou've got and also you preserve overhaul each one of us 스포츠실시간배팅

Unknown said...

hi there! I just desire to deliver a significant thumbs up with the brilliant records you could have here for this publish. I am returning in your weblog for more soon. Have you ever concept approximately writing an ebook or guest authoring on different websites? I've a weblog focused on the equal thoughts you speak and would like to have you ever percentage a few testimonies/data. I realize my audience would revel in your work. In case you are even remotely involved, sense free to shoot me an electronic mail. Wow!, this become a pinnacle exceptional submit. In concept i’d want to post like this as nicely – taking time and real effort to make a nice article… but what am i able to say… i hold putting it off and in no way seem to get some thing executed 먹튀사이트

Roman said...

terrific submit i have to say and thanks for the statistics. Training is simply a sticky difficulty. But, remains many of the leading subjects of our time. I appreciate your put up and stay up for greater. I just determined this blog and feature excessive hopes for it to keep. Keep up the exceptional paintings, its hard to locate proper ones. I have brought to my favorites. Thanks. Its a high-quality pleasure analyzing your put up. Its full of statistics i'm seeking out and i really like to publish a remark that "the content material of your publish is extraordinary" first rate paintings. First-rate publish! That is a totally fine weblog that i can definitively come again to greater instances this 12 months! Thank you for informative put up. 먹튀사이트

Unknown said...

what i don't comprehended is in all reality the way you aren't actually considerably greater very much wanted than you'll be at this moment. You're insightful. You see alongside those strains essentially concerning the problem of this concern, delivered me as i would love to think accept as true with it is some thing however a super deal of fluctuated points. Its like women and men aren't blanketed besides if it's some thing to gain with girl crazy! Your individual stuffs terrific. All of the time handle it up! What's taking spot i am new to this, i coincidentally discovered this i've discovered it totally accommodating and it has assisted me with excursion loads. 먹튀검증사이트

Roman said...

in this remarkable plan of things you get an a+ for exertion. Exactly in which you certainly misplaced us was first inside the actual elements. As it's far said, subtleties constitute the identifying moment the rivalry.. Additionally, that couldn't be extensively more proper in this newsletter. Having stated that, permit me say to you exactly what tackled job. The writing is in reality charming and that is in all possibility why i am placing forth an try to commentary. I don't in reality make it an normal propensity for doing that. Furthermore, regardless of the truth that i'm able to surely see a leaps in motive you watched of, i am now not certain of exactly how you appear to interface the thoughts which make your decision. For the present i'm able to, most in all likelihood purchase in for your problem yet trust faster instead of later you sincerely join the specks lots better. Woah! I'm truly adoring the format/subject matter of this website online. It's fundamental, yet powerful. A ton of instances it's hard to get that remarkable equilibrium" among convenience and appearance. I need to say you have got worked efficiently with this. Furthermore, the weblog stacks quick for me on chrome. Uncommon blog! Whats up! This publish couldn't be composed any higher! Seeing this put up facilitates me to recollect my beyond flat mate! He typically persisted lecturing about this. I'll enhance this article to him. Without a doubt sure he will have an remarkable perused. Much obliged for sharing! Hi there cool web site!! Guy .. Lovable .. Remarkable .. I'll bookmark your website and take the feeds likewise… i am happy to find out a extremely good deal of valuable statistics right here inside the publish, we need foster more strategies in such way, a debt of gratitude is so as for sharing. . . . . . Wonderful! This could be one particular of the most beneficial websites we have at any factor display up across regarding this count number. Basically top notch. I'm moreover an expert on this subject matter so i will understand your diligent attempt. Appropriate installation, quite enlightening. Hiya! I am grinding away surfing round your weblog from my new apple iphone! Surely needed to say i really like perusing your blog and expect every one in every of your posts! Keep up the extremely good work! Genuinely had to foster a quick note to thank you for the whole lot of the extraordinary strategies you are composing right here. My lengthy internet query has now been compensated with acceptable know-how to discuss with my companions and co-workers. I 'd say that most people of us visitors are amazingly honored to abide in an eminent spot with numerous specific people with supportive thoughts. I feel very lucky to have applied your site and expect a variety of extra amusing events perusing here. Lots obliged to you again for a wonderful deal of factors. Woah! I'm in reality adoring the format/difficulty of this blog. It is truthful, yet successful. A brilliant deal of times it is fairly tough to get that extremely good equilibrium" between heavenly ease of use and appearance. I have to say you have labored genuinely hard with this. Also, the blog stacks very short for me on chrome. Heavenly blog! 먹튀사이트

Johnatan said...

so many thrilling stuff on your weblog particularly its discussion. Definitely its first-rate article. Keep it up. Satisfactory put up! That is a totally exceptional blog that i'm able to definitively come back to extra instances this year! Thank you for informative submit. I've examine all of the comments and recommendations posted by the site visitors for this article are very pleasant,we will look forward to your next article so handiest. Thanks i assume that is an informative publish and it's far very beneficial and knowledgeable. Therefore, i would love to thank you for the endeavors that you have made in writing this text. All the content material is truely well-researched. Thank you 해외안전놀이터

Oliver Regins said...

i experience so fortunate because i've a blogger such as you that gives fresh ideas depending at the every day scenario. To be very honest, your blogs are easy to examine and apprehend. Desirable success along with your destiny articles as well. thank you for this engaging article. On occasion you operate actual-existence examples on your articles which can be best for me as a reader, but lamentably, from time to time i didn’t get your point inside the put up. It seems fake or irrelevant. Nicely, it’s a very good one. Top notch put up i need to say and thanks for the statistics. Education is truely a sticky concern. But, continues to be many of the leading subjects of our time. I respect your post and sit up for more. I truely cherished reading your blog. It changed into very well authored and smooth to apprehend. Not like other blogs i've examine which can be sincerely no longer that right. Thanks alot! In case you once in a while plan on the use of the web browser that’s now not an problem, however if you’re making plans to browse the internet alot out of your pmp then the ipod’s large screen and better browser can be important. I assume this is a really precise article. You are making this facts thrilling and engaging. You give readers a lot to reflect onconsideration on and i respect that kind of writing. Excellent factors you wrote here.. Fantastic stuff... I think you've made a few actually thrilling factors. Preserve up the good paintings 먹튀검증

Robert said...

first-rate to be journeying your blog once more, it has been months for me. Well this article that ive been waited for therefore long. I need this newsletter to finish my mission in the college, and has equal subject matter together together with your article. Thanks, first-rate percentage. I simply stumbled upon your weblog and wanted to say that i have absolutely loved analyzing your blog posts. Any way i'll be subscribing in your feed and that i hope you publish again quickly. Big thank you for the beneficial data. Within the especially recent past. The enjoy turned into surely astounding. On the off threat that lone i've the opportunity 파워볼사이트모음

John Lewis said...

If you are actually pondering exactly how to get youtube views , it is actually vital to think about the subject matter that you'll be actually dealing with. You may boost the possibilities of receiving even more views by appearing for various other online videos on the exact same subject as yours.

casinositeone.JDS said...

This is also a very good post which I really enjoy reading. It is not everyday that I have the possibility to see something like this. 카지노사이트원

casinosite777info.JDS said...

You actually make it look so easy with your performance but I find this matter to be actually something which I think I would never comprehend. 카지노사이트777

casinositezone.JDS said...

It seems too complicated and extremely broad for me. I'm looking forward for your next post, I’ll try to get the hang of it! 카지노사이트

casinositeguidecom.JDS said...

Thank you for sharing this post. 카지노사이트 It is a great post, I am really impressed by your post.

johnstepan said...

I would really appreciate it if you could go into further detail. Thank you!
preliminary protective order virginia

casinositerank said...

have read your article; it is very informative and helpful for me.

gwolf said...


This is really helpful post and very informative there is no doubt about it.

sportstoto365 said...


Nice post. I learn something totally new and challenging on blogs I stumbleupon everyday.

victortimely123 said...

Hats off to your exceptional blog! Your tireless dedication to delivering invaluable and thought-provoking content is truly commendable. Your adeptness shines through each entry, rendering your blog an indispensable haven for enthusiasts. Deepest gratitude for consistently serving us such enriching content. Middlesex County Driving Without a License Lawyer and Middlesex County Reckless Driving Attorney

Post a Comment