How is ChatGPT helping the Payments IndustryPayel Ghosh
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Chat Generative Pre-Trained Transformer (ChatGPT) is a pre-trained AI bot that can chat with you and generate relevant natural language text in response to your input text. The most impressive aspect of this software is that it promptly provides clear and concise information.
Financial institutions, payment gateways, and processors securely process payment transactions. Being a Chatbot, it does not have access to sensitive payment data, which means your bank accounts and credit card details are safe and not public. So why do you think ChatGPT is also a lookout for the payment industry?
Below are a few cases where ChatGPT is already involved.
- ChatGPT can answer your payment-related queries, for example, the various payment methods accepted by a bank or organization. It can explain the different payment methods’ advantages, limitations, and security features. It can help you define the payment steps using other payment channels like credit cards, debit cards, wallets, and bank transfers. It can guide you to set up recurring payments, raise chargebacks and initiate refunds. It provides information about payment policies like refunds, cancellation fees, payment deadlines, payment rights, and obligations.
- ChatGPT can market product and service-related information and its respective payment recommendations considering customers’ payment history, current needs, and convenience so users can choose the best product at the best price and pay as per their convenient payment method.
- ChatGPT can access transaction data to clarify transaction descriptions and payment records. It can help provide balance information as well.
- ChatGPT is essential in educating cardholders regarding credit limits and can offer recommendations on their financial management by monitoring their spending patterns. ChatGPT will allow initiation payments through the chat window if integrated with the payment gateways and processors.
- ChatGPT can identify scenarios where it cannot answer or provide any solution; in those cases, it refers to human representatives. This ensures customer satisfaction.
- ChatGPT verifies the legitimacy of online payment platforms and secure payment gateways. It can detect fraud by monitoring transactions and user behavior in real-time. If trained, it can identify deviations in user behavior and unusual transaction patterns by comparing them with historical data. It can analyze IP addresses and device information.
- By analyzing historical fraud cases, it can identify potential fraud attempts. It can also interact with users, ask relevant questions, and analyze their responses to detect suspicious behavior. It can assign risk scores to transactions or accounts for further investigation.
- ChatGPT can explain the payment compliance and regulations, AML Laws, KYC requirements, Payment Card Industry Data Security Standards, General Data Protection Regulations, whom they apply, and their implications on business and customers. It offers firms proper guidelines to comply the payment regulations. It can recommend implementing secure payment processes, data protection measures, and fraud prevention techniques, identifying areas where compliance may be at risk, and suggesting how to address them effectively. It can also provide information on compliance audits, their process, and their scope. It can help prepare for the audit and address audit findings to maintain compliance and regulatory requirements.
- ChatGPT can generate local language text used in monthly billing reminder emails and texts where the directions for payment, amount details, and due dates are mentioned in the customer’s local language. This enhances customer satisfaction and motivates them to sign up for automatic payments. It also helps collect feedback and conduct surveys so that insights can be gathered on the business’s performance, user satisfaction, and areas of improvement; It can also record the response for further analysis.
For Payment service providers, gateway providers, and processors:
- Apart from risk assessment, compliance support, and transaction monitoring, ChatGPT can provide documentation and tutorials to developers so that they can integrate these service providers. It guides best practices and helps in troubleshooting.
For Payment network providers:
- ChatGPT can provide insights into its performance, transaction volumes, and uptime, besides providing network information, integration guidance, and compliance support. It can provide statistics and give recommendations for optimizing network efficiency and scalability.
- ChatGPT can help customer support by providing all required information on card activation, rewards program, and transaction-related queries.
- Other benefits banks can get from ChatGPT include fraud detection and prevention, dispute resolution support, and customer financial education.
There are more areas where ChatGPT is helping on top of the above few points. But as every innovation is successful only when its acceptance and adoption are high, users may be delighted to use and reap the benefits of ChatGPT or may raise concerns about data privacy and security to access their financial transactions.
In the future, if ChatGPT is widely accepted, it may be used for payment transactions if it is integrated with payment systems and platforms. That is only feasible when the security concerns – infrastructure security and user safety- are addressed. Hackers can obtain sensitive user information if the data is not adequately secured.
Once the security aspect is taken care of, payment companies will explore the integration between ChatGPT and payments, as the entire chain from customers to banks will benefit from the growing digital business.
You can contact us if you want to implement AI solutions like ChatGPT within your application. Cigniti, with its deep payment domain knowledge and testing expertise, can provide consultancy and help you implement AI solutions within your application.