Mastercard’s Customizable Decisioning Puts Issuers in the Driver’s Seat of Transaction Approvals

Mastercard has introduced a new decisioning tool that gives issuers unprecedented control over transaction approvals, letting them customize rules directly on the network to prioritize high-value customers and fine-tune authorization strategies, according to a company press release.

On-Demand Decisioning (ODD) enables issuers to improve cardholder experiences and adjust decisioning to align with the goals most important to their business.

For many issuers, that may mean catering to the needs of their most valuable customers. A completely customizable rules engine powers On-Demand Decisioning, and issuers can set ODD to prioritize approvals for cardholders that bring them the most revenue.

In Mastercard’s release, Nelson Aguiar, Executive Director at Porto Bank, said On-Demand Decisioning helped the bank optimize its authorization strategy, particularly by maintaining the experiences of its high-value clients.

On-Demand Decisioning allows an issuer to prioritize approvals for its most valuable customers.

Issuers who are uncertain about handing off instant approval or decline decisions, ODD offers flexibility. The tool allows issuers to set their own evaluation rules and choose whether Mastercard should step in to review or refine a decision before it reaches the merchant.

“Security, flexibility, and reliability are table stakes for any digital experience,” Laura Quevedo, Mastercard’s Executive Vice President of Fraud & Decisioning Solutions, said in the release.

Quevedo noted that ODD is an example of how Mastercard empowers financial institutions to meet security and reliability needs with more agility, adding that the solution is a game-changer for decisioning.

Merchants also stand to reap the rewards of On-Demand Decisioning, especially if it helps them cut down on false declines. Credit card companies and merchants both have an incentive to prevent instances of fraud, but they’d prefer to do so without blocking legitimate transactions.

A consumer who experiences a decline at the point-of-sale can cause friction for a merchant, even if the decline had nothing to do with the merchant’s policies. A business can see its checkout lines flow more smoothly when fewer of its customers have declined transactions.

Mastercard launched On-Demand Decisioning at its recent conference covering cybersecurity and fraud prevention. The company also demonstrated to customers at the conference how the tool functions.

Mastercard plans to make On-Demand Decisioning available on Oct. 1, so issuers have time to familiarize themselves with the solution and potentially implement it ahead of the holiday shopping season. According to Aguiar, Mastercard partners can anticipate an efficient installation of ODD.

“The solution required no implementation effort and delivered consistent results with minimal operational risk,” Aguiar said. “Mastercard’s collaborative approach and agility throughout the process were key factors.”