MasterCard has launched a tool designed to assist businesses accurately predict fraud especially when paying with cards.
The MasterCard IQ Series harnesses real-time insights and intelligence thereby empowering card issuers and merchants to authorize transactions with increased accuracy while limiting fraud.
The IQ Series was launched at the ongoing Global Risk Leadership Conference in Dubai. It reinforces MasterCard’s commitment towards a secure cashless environment and superior experience through secure and innovative solutions.
MasterCard President for Middle East and Africa Raghu Malhotra said the solution was now available to financial institutions, businesses and merchants across the Middle East and Africa.
“In today’s digital world, consumers are increasingly more aware about safety and convenience, therefore balancing the growing desire for greater security while maintaining the ease of making payments is important,” said Malhotra said.
“Our IQ series leverages advanced technology and insights to help deliver consumers a convenient, uninterrupted checkout experience.”
The initial two products developed under the series – Authorization IQ and Assurance IQ – are aimed at optimizing the payment authentication process, leading to fewer declines in legitimate transactions and creating more stable revenues for issuers and merchants.
In addition to hampering quality experience, false fraud assessments prove to be a financial burden, as is evidenced by a research that estimates the value of false transaction declines in the United States of America to be USD 118 billion per year – thirteen times more than total amount lost annually to actual card fraud (USD 9 billion), according to Javelin Strategy & Research.
Authorization IQ provides card issuers with relative behavioural insights on spending, such as total spending on an account compared to others in the country, spending in a particular segment, and frequency of card usage compared over an extended period of time.
Assurance IQ enables the distribution of positive e-commerce data indicators between stakeholders. A balanced reputation assessment is achieved considering not only transactional risk indicators but also positive indicators better determining the authenticity of a transaction.
Both products supplement the need for a robust enhanced data exchange network between financial institutions, merchants, and issuers to understand the digital footprint and behaviour of accounts better.
The application of this data in real-time decisions is critical to drive an enhanced consumer experience in increased approval rates and lowered operational impact, without increasing the fraud loss exposure of our network stakeholders.
The MasterCard IQ Series complements the company’s existing multi-layered approach to safety and security across physical and digital payments with innovative solutions, like EMV/chip payment method for payments, SecureCode+ technology for online transactions, and MasterCard Digital Enablement Service (MDES).
“As the payments environment becomes dynamic and mirrors trends in new technology, MasterCard is dedicated to strengthening the security of transactions, and delivering greater peace of mind to its customers across the Middle East and Africa in its pursuit for a World Beyond Cash,” said Malhotra.