• Money
    • Budget
    • Shop
    • Travel
    • Stories
  • Career
    • Advice
    • Entrepreneurship
    • Freelance
    • Small Business
  • Investing
    • General
    • IRA + 401K
    • Stocks + Bonds
    • Retirement Planning
    • Estate
  • The Basics
    • Student Loans
    • Credit Cards
    • Debt
    • Taxes
    • More
  1. Home
  2. The Basics
  3. Credit Cards
  4. Your Credit Card Could Get a Lot Smarter Soon

Your Credit Card Could Get a Lot Smarter Soon

September 21, 2018
By: Esther Bergdahl
  • Share
  • Share on Facebook
Dapper Asian man getting out of luxury car
credit: @mizzdalina/Twenty20

Here's a thing nobody likes: You're at the checkout register, getting ready to swipe or chip-read your credit card and pay. You know you have enough money, but your credit card company declines the purchase. That can mean switching to another card or, less happily for the shop you're patronizing, skipping the purchase altogether.

Video of the Day

A lot of these have to do with fraud detection — the false positives banks' computers catch when they're not sure you're spending the way you usually do. That could soon be a thing of the past, or at least of much less frequency: Researchers at the Massachusetts Institute of Technology have come up with a machine-learning program to reduce false-positive fraud reports on credit card charges by more than half.

Right now, it's a worse problem for banks than it is for consumers. Only about 1 in 5 of these false positives are actually fraudulent, which means a lot of money and time down the drain trying to sort it all out. Meanwhile, customers are annoyed and businesses can lose about $118 billion in annual revenue, thanks to purchases that are never completed.

You can read more from MIT if you want specifics on how it all works. Meanwhile, if you think you've run astray of some actual fraudsters, you should use some online tools to double-check. Identity thieves have a certain type, by and large; even if you don't fit the profile, there are lots of government agencies and private companies you can turn to for help.



Show Comments

Related Articles

5 Last-Minute Tax Tips, In Case You Haven't Filed Yet

5 Last-Minute Tax Tips, In Case You Haven't Filed Yet

The Basics
Taxes
By: Elena Sheppard
Hurricane Harvey Won’t Just Affect Texans

Hurricane Harvey Won’t Just Affect Texans

Money
Budget
By: Esther Bergdahl

PARTNER CONTENT

Money Mistakes Wealthy People Don't Make

Money Mistakes Wealthy People Don't Make

Your Debt Wants a Lifelong Relationship. Don't Let It Happen

Your Debt Wants a Lifelong Relationship. Don't Let It Happen

The Basics
Debt
By: Esther Bergdahl
Stay Ahead of the Game on Background Checks

Stay Ahead of the Game on Background Checks

Career
Advice
By: Esther Bergdahl
How to Save New Hires From the Post-Honeymoon Plateau

How to Save New Hires From the Post-Honeymoon Plateau

Career
Advice
By: Esther Bergdahl

Get Weekly Savings& Finance Tips.

  • Money
  • Career
  • Investing
  • The Basics
  • About
  • Contact Us
  • Terms
  • Privacy Policy
  • Copyright Policy
© 2019 Leaf Group Ltd. Leaf Group Media

Get Weekly Savings
& Finance Tips.

Money Made Easier.

Please enter a valid email.