SAN FRANCISCO — A new bundle of tools that Visa is calling Visa Risk Manager will help credit unions and other issuers better manage their card risk, according to the card brand.
“An issuer must be able to constantly fine tune its authorization and risk management strategies to help it keep pace with rapidly changing fraud patterns,” said Nancy Hilgers, an executive with Visa. “An investment in Visa Risk Manager is designed to make a tangible bottom-line impact by helping financial institutions reduce fraud, increase revenue and improve the point-of-sale experience,” she added.
The new tools will allow issuers to test different authorization strategies against 13 weeks of historical data to find an approach that will minimize the most fraud and improve the customer experience by allowing more approved transactions, the card brand said in an announcement of the new products. After determining its custom authorization strategy, an issuer can use Visa Risk to quickly publish the new authorization rules for all or a subset of its card portfolios and monitor their performance.
“Issuers of all sizes can bring advanced fraud-fighting technology in-house with Visa Risk Manager and better control a critical risk management function,” the card brand said.
Visa said in a statement that Visa Risk will be subscription-based product available to U.S and Canadian issuers as well as issuers in some Latin American countries. It includes three separate components. No executives were available to answer questions about the product.
Visa Rules Manager is a web application that allows issuers to create, test and deploy customized decisioning rules using risk information from multiple sources. The tool also allows issuers to monitor the effectiveness of the rules and quickly execute modifications based on emerging fraud trends.
Visa Real Time Decisioning gives financial institutions the capability to allow Visa to act on their behalf to decline or forward to the issuer for action high fraud-risk transactions using predefined rules created by the issuer. This real-time service addresses potential fraud as it flows through Visa so it never reaches the issuer.
Visa Case Manager enables issuers to view, prioritize and manage transactions that require further investigation after they have gone through the issuers’ fraud protection process.
Issuers can mix and match the components to best suit their needs, Visa said. Visa Risk Manager can be used to either supplement an issuer’s existing fraud risk management products or provide a comprehensive, end-to-end solution, the card brand added