The manufacturer and retailer is upgrading its inventory management and supply chain systems to prepare for a global network of e-commerce sites.
Visa U.S.A. has rolled out anti-fraud technology for online retailers and other merchants that could cut fraud losses by as much as 2 cents per $100 of sales.
Visa U.S.A. has rolled out anti-fraud technology for online retailers and other merchants that could cut fraud losses by as much as 2 cents per $100 of sales. Visa’s overall fraud losses currently represent about 5 cents per $100 in sales. The association doesn’t break out fraud losses for e-merchants.
The technology is expected to cut Visa members’ and retailers’ fraud losses by an estimated $164 million over the next five years, Visa says.
The new technology, Advanced Authorization, builds on existing Visa anti-fraud measures, says Jean Bruesewitz, Visa U.S.A. senior vice president of processing and emerging products.
One of Visa’s existing fraud programs, the Issuer Fraud Protection Service, analyzes transactions at the account level, searching for patterns that look outside the norm for the cardholder. That service runs between 10 and 20 minutes behind the transaction, she says.
Advanced Authorization reviews a transaction on a real-time basis, prior to completion of the sale, based on Visa’s experiences with fraud across its system, Bruesewitz says. “We’re looking at the relationship of that account and that transaction to events that are happening in the payment system, for example, accounts that are put at risk from a data compromise,” she says. “The intent is to stop the fraudster before the transaction occurs without impacting the customer.”
Advanced Authorization also could pinpoint and address coordinated attacks on multiple accounts in real time, Visa says.
The technology will not slow down the checkout process, a major concern of online retailers, Bruesewitz says. Advanced Authorization will add only about 600 nanoseconds to the authorization time. Visa handles authorization in 1.4 seconds.
Advanced Authorization is part of the Visa authorization process and is available to online retailers at no additional charge.