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Data

 

 

 

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Maria Parpou

Executive Vice President, Head of Product - Merchant Cloud

Decoding data to increase authorisation rates

3 min read · 27 February 2025

 

 

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Turning data into opportunities

 

In today's fast-paced digital world, the sheer volume of data generated can be overwhelming. However, emerging technologies are turning this immense amount of data into new opportunities, especially in the realm of payments.



By leveraging advanced analytics, biometrics and machine learning, businesses can improve authorisation rates for payments, reduce the incidence of fraud and provide a smoother, simpler checkout journey.

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Improve authorisation rates with data-rich decision making

 

For consumers, digital payments are a daily routine, often perceived as straightforward and similar across different transactions. However, from our industry perspective, each transaction captures unique data that collectively forms a digital fingerprint of the individual. One of the most notable uses of this data fingerprint is to increase authorisation rates through the EMV 3-D Secure (EMV 3Ds) process.



This innovative system has been developed to analyse vast amounts of customer and transaction data, identifying patterns that can aid in frictionless authentication and alerting retailers and issuers to anomalies that could indicate fraudulent activity. By leveraging these insights, retailers and financial institutions can improve authorisation rates, enhance security measures and ensure a seamless experience for users.

 

Although EMV 3Ds was adopted several years ago, certain aspects of the new authentication process continue to remain underutilised

 

For our Retailer Cloud customers, we ensure that they are taking advantage of the EMV 3Ds 2.0 process, including the EMV 3Ds Method URL. For many, this strategy is overlooked despite many businesses clearly demonstrating the high-performance boost that frictionless payments provide through lower challenge rates when both the retailer, the issuer and their Access Control Server (ACS) support the EMV 3DS Method URL.



 

Using the EMV 3Ds Method URL allows the ACS to provide retailers with a script to collect a rich set of data elements beyond the standard transaction details. These data points can help the issuer determine whether to send a challenge to the cardholder to confirm their identity or allow a frictionless transaction to proceed. Included in these rich data points are historical information on the device the transaction is coming from and details on the browser, including Internet Protocol (IP) address, time zones and others. By leveraging these insights, retailers and financial institutions can improve approval rates, enhance security measures and ensure a seamless experience for users.

Create a future of continuous optimisation with AI fraud solutions

 

The integration of advanced machine learning algorithms significantly enhances authorisation rates by swiftly analysing data from various sources and recognising patterns or irregularities associated with fraud. These systems continuously evolve, adapting to emerging threats and maintaining a step ahead of fraudulent tactics. Consequently, retailers benefit from reduced false positives, ensuring that legitimate transactions are not mistakenly declined. By preemptively screening high-risk transactions before submitting them for network authorisation, overall approval rates see notable improvement.



At Merchant Cloud, we go beyond a traditional payment gateway by offering comprehensive commerce solutions, including artificial intelligence (AI)-driven fraud detection. Our integration with Brighterion’s artificial intelligence and machine learning capabilities through the Transaction Risk Management (TRM) system provides real-time analysis, empowering acquirers to better assist and protect their retailers, decrease fraud and authorise more genuine transactions.

TRM enhances its AI model score with adaptable rules and thresholds, allowing acquirers to tailor the system to their specific needs and a business's risk tolerance. This customisation facilitates an optimal balance between maximising authorisation rates and minimising fraud losses. The effectiveness is evident, with customers experiencing an 80% increase in approval rates, thanks to TRM powered by Brighterion.

Harnessing the power of data has the ability to transform the landscape of financial transactions

 

Not only can it improve authorisation rates and reduce fraud, but also enhance the overall customer experience, creating a win-win situation for all parties involved. By continuously optimising authorisation processes through data-rich decision-making tools like EMV 3Ds and AI-driven fraud solutions like the Transaction Risk Management system, businesses can significantly enhance security while ensuring a seamless and efficient customer experience. For more information on how we can help you to improve your payment processes and ensure a secure, frictionless transaction experience for your customers, do not hesitate to contact us. Our team of experts is ready to assist you in implementing these innovative solutions to maximise your authorisation rates and minimise fraud losses.

Maria Parpou

Executive Vice President, Head of Product - Retailer Cloud

Maria Parpou is Executive Vice President, Head of Product and leads the gateway business in over 100 countries. She joined Mastercard in 2022 and brings over 25 years diverse payment experience. Merchant Cloud offers a SaaS gateway with connectivity to more than 200 acquirers around the world.

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