Takeaways

Galit started her career in fraud management without prior experience.The relationship between payment optimization and fraud prevention is crucial.AI technology is accessible, but fraudsters are leveraging it too.Understanding identity is key to providing good customer service.Merchants are increasingly looking to outsource solutions rather than build in-house.The complexity of payment systems has increased significantly over time.Data sharing among merchants and issuers can reduce false declines.AI will change the way payment systems operate and improve accuracy.Consumer expectations for seamless experiences are growing.The ecosystem will punish merchants for poor practices.

Titles

Navigating the Complex World of Payment and FraudAI's Impact on Fraud Prevention in PaymentsThe Critical Role of Identity in Payment Systems

Sound Bites

"Nobody went to the university and learned payment."

"AI is becoming very accessible to everybody."

"Fraudsters know how to go around your rules.""AI is not solving the problem for you."

"Innovation takes a lot of time.""

The ecosystem will punish you when you don't behave."

"Data sharing is the number one trend."

Chapters

00:00 Introduction to Payment and Fraud Dynamics

03:04 The Role of AI in Fraud Prevention

06:01 Understanding Identity in Payment Systems

09:08 Challenges of AI Adoption in Merchants

11:47 The Complexity of Payment Systems

15:03 The Importance of Data Sharing

18:10 Future Trends in Payment and AI

21:12 Consumer Experience in Payment Systems

On Fraud and Payments:

• "Nobody went to university and learned payments, which is why people always come with a lot of different backgrounds."

• "Everybody's scared of the same thing—fraud. The issuers are scared of fraud, the PSPs are scared of fraud, and everybody's responsible for stopping it."

• "If we don’t find a way as an industry to really come together and share what we know, we’ll keep seeing the same mistakes—false declines, unnecessary friction, and lost revenue."

On AI’s Impact:

• "AI is making it really easy for fraudsters to manipulate the system, but it's also our best tool to fight back."

• "More than 15 years ago, a simple rule like ‘if the IP doesn’t match the billing address, it’s fraud’ was enough. Today, fraudsters can easily bypass rules, so we need AI-driven real-time decisioning."

• "AI isn't a magic solution. Just having AI doesn’t mean you know how to use it. It still needs the right systems and expertise to be effective."

On the Complexity of Payments:

• "I used to think payments were complicated. Now I realize it’s way more complicated than I ever imagined."

• "One transaction today has at least four major decision points—whether to use 3DS, network tokens, debit vs. credit rails, and which PSP to process with. And that’s before handling declines and retries!"

• "Merchants don’t always realize that brute-forcing transactions—just retrying again and again—can actually lower their approval rates and make issuers and PSPs blacklist them."

On the Future of AI and Payments:

• "In the near future, bots will be buying from bots. The entire payment journey will happen without humans even going to websites."

• "The real question isn't just how AI will change payments, but what our role will even be when AI is making all our buying decisions for us."

• "AI will eventually know you better than your wife or co-founder—it will anticipate your needs, optimize your payments, and just execute."

On the Role of Data:

• "Data sharing is the biggest trend shaping payments. Merchants have so much information, but if they don’t share it with issuers, they end up with false declines."

• "A few years ago, merchants were terrified of sharing any data. Today, they’re realizing that sharing fraud scores and behavioral insights actually improves approval rates."

On Customer Experience:

• "At the end of the day, it’s all about the consumer. If you make it hard for them to pay, they will go somewhere else—so will their bots."

• "The customer’s expectation for a frictionless experience is only growing. If you introduce unnecessary steps, they won’t forgive you—they’ll just leave."

Closing Thought:

• "With all the complexity in payments, fraud, and AI, the most important thing remains the same—how good is the customer experience?"