In addition to reducing back office processing expenses, Payment Service 2000 will provide members with a superior level of fraud control and risk management.
With the implementation of PS2000 and the creation of a centralized Visa database containing a rolling six-month history of transaction information, Visa will be able to identify risk concentrations faster and alert members and law enforcement to potential fraud earlier.
Visa has already begun pilot-testing the Transaction Analysis System, which identifies for issuers unusual account activity within certain higher-risk merchant categories. The impact of this process is restricted, however, by the limited transaction data available to Visa today.
But by utilizing the PS2000 database and analyzing more complete transaction data using advanced statistical and behavioral analysis techniques, Visa will be able to identify more potential fraud among merchants earlier so that issuers can reduce their losses.
Once again, Visa members will benefit from the centralized delivery system architecture of VisaNet. As Visa identifies risk concentrations, it can include that data in the on-line authorization messages sent to members. Issuers will be able to combine the risk information with their own cardholder data when making authorization decisions.
To ensure that the PS2000 risk analysis process utilizes the most accurate, up-to-date records of members' own fraudulent activity, future Visa fraud reporting will be based on the PS2000 transaction "identification codes" stored in the database. This will make it easier for members to report fraud and it will significantly reduce reporting errors.
