Verifone adds Visa fraud detection to its card payment systems

Verifone, a payments company, has switched on a Visa fraud detection tool called Featurespace across its payment gateways. A gateway is the service that passes a customer's card payment from the checkout to the bank. The aim is to catch fraud as it happens, without blocking real customers.

How it works

The system checks more than 1,800 details of each payment in under 100 milliseconds. It learns what normal looks like for each merchant, card and account. A purchase is then compared with how that merchant usually does business. Verifone says it also looks for patterns that only show up when several signals are combined, and it learns over time.

It covers in-store, online and mobile sales. Fraud screening, compliance checks and anti-money laundering detection are built into the payment flow. Merchants do not need to add a separate fraud vendor or integration.

Why shops care

Verifone says fraud costs merchants twice: through direct losses, including chargebacks (when a customer disputes a charge and the shop loses the money), and through real customers who get declined. It also says chargebacks can hurt a merchant's standing with card networks. Visa bought Featurespace, a UK company, in December 2024.

What is not clear

The announcement gives no results, such as how much fraud was stopped. It does not say what the service costs or when each merchant will see it.