Smarter STIP leverages AI to help reduce the number of declined transactions for consumers when financial institutions face disruption


Smarter STIP leverages real-time artificial intelligence (AI) to analyse past transactions. (Credit: profivideos from Pixabay.)

Visa has unveiled Visa Smarter Stand-in Processing (Smarter STIP), a new offering that helps financial institutions manage transaction processing during service disruptions.

Smarter STIP leverages real-time artificial intelligence (AI) to analyse past transactions, and creates informed decisions to approve or decline transactions on behalf of issuers when their systems go offline.

Visa’s new Smarter STIP service builds on the company’s existing STIP capability by leveraging deep learning to analyse previous transactions at the cardholder level.

Smarter STIP provides transaction decisions based on insights derived from the cardholder’s past purchasing behavior, instead of applying static rules across the complete card portfolio.

Visa to roll out the Smarter STIP in October

The additional intelligence is expected to enable Visa to provide a transaction decision on behalf of the issuer, which resembles the issuer’s own decision making process, and has the potential to decrease up to 50% transaction declines for cardholders.

Visa said that its Smarter STIP is among the new real-time deep learning capabilities, aimed at addressing long-standing challenges and pain points for buyers, sellers, and financial institutions.

The company intends to roll out the Smarter STIP offering in October 2020.

Visa technology president Rajat Taneja said: “AI is one of the most transformative technologies of our time, giving us the power to build data-driven products that deliver new levels of insight and personalization.

“With one of the largest and richest data sets in the world, Visa is extremely well positioned to unlock the full potential of AI for our clients and cardholders, and at massive scale.

“We’ve made significant investments in our infrastructure, making it possible to harness this data more deeply across all facets of VisaNet. Our data, combined with low-latency architecture and our unique modeling capabilities, make our technology platform among the most powerful for AI.”​

In September last year, Active.Ai partnered with Visa to provide banks and credit unions with out-of-the-box conversational AI solutions.