Marqeta adds AI-powered risk scoring to boost real-time fraud detection

Marqeta has introduced an AI-powered risk scoring capability within its Real-Time Decisioning (RTD) product, aiming to improve fraud detection at the point of transaction authorisation while reducing false declines.

The enhancement embeds machine learning directly into the authorisation workflow, enabling issuers and programme managers to assess transaction risk in real time. The system evaluates more than 300 transaction attributes against historical behavioural data derived from Marqeta’s proprietary card programme dataset, allowing for dynamic risk assessment tailored to individual customer use cases.

The update forms part of Marqeta’s broader risk services suite, RiskControl, which includes Know Your Customer (KYC), 3D Secure, RTD, and dispute management tools. The company positions the enhancement as a way to give clients more granular control over fraud management through configurable rules and real-time insights.

The development comes amid rising fraud pressures across digital payments. Industry estimates suggest global payment fraud could increase by more than 150% between 2025 and 2030, underscoring the need for adaptive, data-driven detection systems that can respond to increasingly sophisticated attack vectors.

By combining rule-based controls with machine learning models, Marqeta aims to address a longstanding trade-off in payments: preventing fraudulent transactions without blocking legitimate ones. False declines remain a significant friction point for issuers and merchants, often leading to lost revenue and diminished customer experience.

Anthony Peculic, Interim Chief Product Officer at Marqeta, said the integration is designed to help businesses scale securely. “Today’s fraud threats are evolving faster than ever, requiring businesses to keep pace as they scale their card programmes. By embedding AI-powered controls and advanced machine learning into the authorisation process, we enable customers to expand confidently while also strengthening their fraud defence as they scale.”

Strategically, the move reinforces Marqeta’s positioning as a modern card issuing platform focused on real-time infrastructure and embedded finance use cases. As FinTechs and digital banks increasingly seek flexible issuing and risk management capabilities, integrated decisioning tools are becoming a competitive differentiator.

The rollout reflects a broader industry shift towards embedding AI-driven intelligence directly into payment rails, rather than relying on post-transaction monitoring, as firms look to mitigate fraud losses while maintaining seamless user experiences.