Getting intelligent about account verification
We’ve heard a lot about data, AI and machine-learning recently.
But practically speaking, in the world of payments, how do you cut out the clutter, end confusion and help merchants to understand what lies beneath – the data?
We spoke to Product Manager Andrew Nuthall to find out more about Worldpay Intelligent Account Verification (IaV).
"It’s adaptive, dynamic and self-learning, and it uses all the real payments data that we have. Our unique viewpoint allows access to more than 40 billion transactions – across countries, currencies, card types – around the world"
So Andrew, first question – what is Intelligent Account Verification?
It’s one of the front-line offerings of intelligent payments from Worldpay. It’s adaptive, dynamic and self-learning, and it uses all the real payments data that we have to help businesses increase the conversion of account verifications. It comes from all the data we see through our enterprise data platform and all the work that we do from a proprietary data science capability.
Who does it benefit?
Customers whose businesses run through subscription, really any retailer with high “card-on-file” transaction volume – those are businesses that benefit most from IAV. That covers any business which charges the same customer, the same amount, every month for something.
Can you run us through the process – how does it work?
Sure. Every retailer who wants to validate a card starts with an initial test transaction – to make sure the account is active, open etc.. They have to determine an amount to validate, zero or some nominal amount. The problem is different card issuers behave differently when it comes to authorising and submitting the wrong amount can lead to account verifications being needlessly declined.
"The automatic optimisation of verification amounts helps to increase our merchants’ acceptance rates - and that can mean more sales because it also helps to improve your customers' experience."
IAV lets our customers simply submit the payment to us. We do the rest. The Intelligent Account Verification service returns the best amount to authorise. We authorise the payment. And, any nominal payments are automatically reversed. It’s all done and optimised in real-time, over-and-over again with IAV repeatedly selecting authorisation amounts most likely to result in acceptance for our customer.
The automatic optimisation of the verification amount helps to increase our merchants’ acceptance rates and that can mean more sales for them. And, while it also helps to improve customer or user experiences, it helps increase the likelihood of repeat sales.
What’s unique about Worldpay’s work here?
What’s really unique is this is machine learning based on visibility that virtually no one else has. That’s our view in to more than 40 billion transactions – across countries, currencies, card types – around the world. It produces data across a universe of issuers and verification experiences. That helped us develop insights into issuer behaviour that is unique to our global view.
What’s on the horizon for Intelligent Payments?
Data is the lifeblood of insight. Intelligent Payments is about data and what we do with it. IAV is just the tip of what’s possible with the data intelligence that we have. Ongoing investment in the enterprise data platform and across our data science functions will see more machine learning used to tap into our data assets to inform new offerings in areas like fraud and intelligent retries.