Visa Inc.
Methods, systems, and apparatuses for detecting merchant category code shift behavior

Abstract:

A method for detecting merchant category code (MCC) shift behavior is disclosed. A target merchant operating in one or more industries is identified, and a peer set of merchants that operate in the same industries as the target merchant is determined. A first dataset D1 and a second dataset D2 is received. One or more merchant consistency ratios using the first dataset D1 and the second dataset D2 is calculated. An industry ratio for each of the industries and a MCC ratio for the one or more merchants is calculated using the second dataset D2. Whether the target merchant exhibits MCC shift behavior is determined by comparing the merchant consistency ratios to a first threshold, comparing each industry ratio to a second threshold, and comparing the MCC ratio to a third threshold. In response to a determination that the target merchant exhibits MCC shift behavior, an alert is communicated.