Ajay Bhalla, president of Enterprise Security Solutions, MasterCard. “Nobody likes being falsely accused of something. Our IQ products leverage technology and insights to deliver merchants and consumers a convenient, uninterrupted checkout experience.” At launch, the MasterCard IQ series will include two core products providing insights into cardholder spending habits in a split-second:
- Authorization IQ – provides issuers with segmented account spending insights to help them make more informed authorization decisions. Unique and historical behavior of the card is used to predict and assess risk against a current transaction, decreasing false declines.
- Assurance IQ – enables the exchange of vital information from the merchant about the circumstances of a transaction. This enables MasterCard to provide a blended risk score about the transaction to the issuer, enhancing confidence in the approval.
- The value of false declines per year has hit $118 billion – more than 13 times the total amount lost annually to actual card fraud ($9 billion), according to Javelin research.
- More affluent cardholders account for half of all false declines, as they tend to spend more, more often, especially when traveling.
- If falsely declined, cardholders tend to change attitudes around the card and retailers; 39 percent abandon that card after a false decline, while a quarter decrease card usage. In addition, 32% say they plan to stop shopping at the retailer where they were declined.
