The company said in a statement it had been a pioneer in using neural networks to be the foundation of its AI platform that analyses transactions in real time, using more than 500 characteristics of risk to identify potential fraud.
In the period mentioned, the company said it had processed 138 billion transactions and analysed them all, with each taking about one millisecond. Fraud rates were down to 0.1% now, Visa claimed.
It cited figures from the Australian Payments Network, a regulatory body set up by the payments industry to improve safety, reliability, equity, convenience and efficiency of payment systems, that indicated a decline in card fraud for the financial year. This included online and e-commerce transactions which are called card-not-present interactions, and are more susceptible to fraud than those in which a card is physically present.
“One of the toughest challenges in payments is separating good transactions made by account holders from bad ones attempted by fraudsters without adding friction to the process or declining sales unnecessarily,” said Julian Potter, Visa’s group country manager for Australia, New Zealand and the South Pacific.
“Every transaction represents a buyer’s purchase of something wanted or needed and a seller’s step towards business growth, and at Visa, we’re focused on safeguarding all parties involved in this transfer of value.
“As commerce has shifted online, so has the focus of fraudsters, and while the payments industry’s efforts are bearing fruit, now is not the time to let down our guard."
Potter added that with new players entering the online payment business, it was critical that the industry harnessed the expertise of global leaders to identify and combat fraud before it affected Australian businesses.
Visa recently unveiled Smarter Stand-in Processing, a new solution that uses AI to help financial institutions manage dealings when services are disrupted.
“The most fundamental attribute in global commerce is trust – if a business loses a customer’s trust, they lose sales. Visa’s ability to step in for a financial institution and make authorisation decisions in the event of an outage benefits every business that accepts Visa,” Potter added.