Sunday, July 22

SIX’s payments unit deploys AI for fraud

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Post-trade services provider SIX is teaming up with a German-Israeli startup to launch the “Fraud Free” service for its retail payments service.

The “highly sophisticated” solution uses AI and combines the thought processes of human analysts with machine scalability, identifying new fraud patterns as they emerge, in real time, making it possible to detect fraud before it causes damage, according to a company statement.

Precise decisions, in as little as 15 milliseconds, ensure the highest conversion rate for merchants.

Merchants that ‘ensure’ their transactions can expect to have less worry about fraud and chargebacks as Fraugster is taking over the liability with insurance backed by reinsurer MunichRe.

And fewer rejections of non-fraudulent transactions translate to an improved conversion rate, generating a revenue uplift of up to 15%, said Roger Niederer, head of merchant services at SIX Payment Services.

Across the industry, merchants lose an average of 1.5% of annual revenue or $29 billion to fraud. And applying strict rules to block suspicious transactions is not the right answer, as it may backfire: 6 out of 10 consumers never return to a merchant who blocked their transactions.

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