In a press release, Fiserv said financial companies working with Fiserv will be able to access the service, which will help them increase the accuracy of real-time transaction approvals, reduce the number of false declines and improve the overall cardholder experience.
“Minimizing the risk of financial losses while avoiding declining genuine consumer transactions requires a delicate balance,” said Patrick Davie, VP of Card Services at Fiserv, in the press release. “False declines can damage the relationship with cardholders, so evaluating multiple factors, including information about the consumer, merchant and issuer, throughout the shopping experience can enhance that cardholder experience and approve more genuine transactions, without increasing risk.”
According to the company, it’s the first processor to provide Mastercard Decision Intelligence to financial institution clients. The platform relies on artificial intelligence to offer a predictive score by applying thousands of data points and modeling techniques to each transaction, which helps issuers make a more informed authorization decision.
Fiserv’s research shows that the number of active cards after two or more false-positive denials declines by an average of 20 percent in the six-month period after the last false-positive denial. This suggests that roughly 20 percent of cardholders may stop using the card after two or more false declines.
What’s more, the company said the average monthly amount spent on the card after two or more false-positive denials declined by 15 percent on average in the six months after the false denials. Fiserv noted that Mastercard Decision Intelligence is different from other scoring products because it takes a broader approach to assessing, scoring and learning from consumer transactions.