Smarter Posting service using AI will analyze historical data and take decision with 98% accuracy
Artificial Intelligence is getting a lot of traction in the finance industry to automate payment processing services. However, finding a niche use case and implementing it, is not easy though. Visa, the world’s leader in digital payments, has taken a lead step in this area by coming up with a smart solution powered by AI. They planned for this in August last year (2020) and Corona pandemic was a perfect time to lunch these AI powered services.
So how does this affect a consumer ? Here is how VISA explains :
Today’s digital-native consumers expect real-time visibility into their finances as they increasingly conduct banking on mobile and online platforms. However, the payment experience for consumers can be inconsistent, with some purchases taking longer to finalize on their balance than others. This lag can create confusion or concern for cardholders, resulting in increased call center volume or potential overdrafts.
This delay occurs because the amount authorized in real-time at the checkout counter can differ from the amount eventually cleared from a consumer’s account. For example, the final amount can change when a restaurant-goer adds a tip at a restaurant, or when a cross-border payment happens involving multiple currencies. To prevent consumer confusion from seeing multiple charges for a single transaction, banks often delay posting the payment or updating the account balance until they have certainty about the final amount.
To help issuers create a better banking experience for cardholders, Visa developed Smarter Posting, a service that uses AI to deliver a customized score for each transaction as part of the authorization process. The Smarter Posting model analyzes transaction details and historical data to predict the likelihood that a transaction amount will remain consistent through clearing. In testing, the model has achieved 98% accuracy1 in predicting whether the transaction amount will likely remain stable, giving financial institutions added intelligence to provide a more consistent end-to-end payment experience, for example, by provisionally updating the account balance that a cardholder sees.
Quite a niche use case, isn't it ? Visa Smarter Posting will be available in Europe in April 2021, and then rolled out globally. Innovations like this in Payment systems are going to make digital payments more efficient and those who are early in the race will definitely gain a lot.
For more details visit : https://usa.visa.com/products/visanet-plus-ai.html
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