MasterCard is introducing behavioral and contextual analytics tools to help card issuers navigate fraud risks. Called Authorization IQ and Assurance IQ, the tools are part of a new product line called, of course, MasterCard IQ.
Authorization IQ offers issuers insights on the behavioral patterns related to user accounts, analyzing them to determine the risk level of a current transaction. Assurance IQ, meanwhile, extracts information from a merchant concerning a transaction’s circumstances and analyzes it to produce a risk score with respect to potential fraud.
The systems are intended to mitigate the issue of false declines; discussing them in a statement, MasterCard Enterprise Security Solutions President Ajay Bhalla explained that stringent efforts to reduce fraud “have resulted in an increase in transactions being needlessly declined,” suggesting that MasterCard IQ tools can “leverage technology and insights to deliver merchants and consumers a convenient, uninterrupted checkout experience.”
The new tools come on the heels of MasterCard’s just-announced mobile alerts system, which are designed to notify cardholders when their accounts are used outside of predetermined boundaries—all reflecting efforts to better leverage payment data for security and fraud mitigation. The MasterCard IQ tools also reflect a growing enthusiasm in the financial services sector for behavioral analytics technologies.