Fair Isaac Transaction score rates your risk based on your purchases/spending habits

[MojaveMoon]

http://www.fico.com/en/FIResourcesLibrary/Transaction_Scores_1314PS_EN.pdf

---

http://www.fico.com/en/Products/DMApps/Pages/FairIsaac-Transaction-Scores.aspx

Fair Isaac Transaction Scores identify high-risk customer behavior faster and more accurately by scoring authorization transaction data. These scores improve the risk management performance for businesses using Fair Isaac's TRIAD adaptive control system.


Key Benefits

* Spot increasing risk sooner and more accurately

Authorizations data raises predictive power when used in conjunction with your cycle-based behavior scores. It separates customers with the same behavior score by revealing different levels of risk in day-to-day behavior patterns not evident in activity summaries. It provides fresh analytic insights with every transaction to sharpen your intra-cycle decisioning.


* Reduce losses while improving revenue

With Fair Isaac Transaction Scores, you can finely segment your portfolio to avoid overly conservative decisions while tightly controlling risk exposure. You can also use these fresh analytic insights for better intra-cycle decisions, which can be especially important with new accounts.


* Comply with risk regulations

Fair Isaac Transaction Scores improve separation within portfolio segments and can be used to produce more homogenous risk pools for Basel II compliance.


Feature Highlights

* Rank-order account risk based on transaction data

Fair Isaac Transaction Scores provide an additional prediction of future account risk by analyzing customer behavior from the actual data generated by every card transaction. Modeling this abundant data, which captures rich detail about customer habits and lifestyle, provides significant incremental predictive lift in assessing consumer risk.


* Based on Fair Isaac's powerful transaction scoring engine

Fair Isaac Transaction Scores are built using the transaction scoring engine that is part of our Falcon® Fraud Manager, the leading system for detecting card fraud worldwide. The transaction scoring engine is key to processing voluminous transaction data for near real-time scoring. No other solution gives you so much predictive power from your transaction data.


* Used as decision keys for account management or collections

Transaction scores can be used as decision keys for TRIAD® adaptive control systems. They can also be used outside of account management-in collections, for example, with Fair Isaac Debt Manager solution, where they further separate delinquent accounts, enabling resources to be focused where risk of bad debt is highest.

---

[Guardian]

So is this something hidden from the consumer and provided to businesses only or is it the same data used to factor our FICO scores that we see as well?

[Uborrow-Upay]

Think "AMEX + shopping at Walmart = CLD".

[Guardian]

So it would be business side, one more thing to use to screw with us

[Uborrow-Upay]

Exactly, Guardian!

I can see it now...you give up red meat (for health reasons), and soon thereafter you adopt a homeless kitten from the local shelter.

The CCC deduces from its analysis of your card receipts that your financial situation is deteriorating rapidly (having been reduced to eating cat food instead of steaks), and your credit lines are limited accordingly!

Maybe not so far fetched after all...

[MattH]

---

@Uborrow-Upay wrote:
Think "AMEX + shopping at Walmart = CLD".

---

Hmm, I've never had a CLD, rarely shop at Walmart, and have never used my AMEX card when I did shop at Walmart.  But on each of the four occasions over the past seven years when I spent over 300 dollars at Walmart when I got home I got a call from the Security Department at either CITI or CHASE (I forget which of them) verifying the transaction.  In none of those cases was there any question of them being worried about my credit, they just wanted to be sure this transaction was mine because shopping at Walmart was atypical for me and therefore triggered a fraud alert.

[Guardian]

Matt, its truly absurd. I find it intrusive and unnecessary for them know everything we do. After all, there is such a thing as privacy and actions becoming intrusive at one point. Too bad since the government benefits from this arrangement, they do nothing to protect the people by enacting appropriate legislation to bind everyone equally. I mean if you or me were to ever do this kind of tracking on a neighbor, friend, or family, we would be labeled stalkers and identity thieves but not when corporations do it for the sole purpose of profiting from it. Anyway.