Machine Learning (ML) is a type of artificial intelligence where computers learn from data to make decisions without being explicitly programmed for every rule. In payments (like Stripe Radar), ML analyzes billions of historical transactions to identify patterns that indicate fraud, adapting faster than human rules ever could.

FAQs:

  • How does ML help my business?
    It blocks fraudulent payments automatically, saving you from chargebacks, while allowing legitimate customers through (fewer false declines).
  • Do I need to train the ML?
    No, Stripe trains the models on its global network data. However, providing feedback (labeling charges as fraud/not fraud) helps the model learn specifically for your business.
  • Is ML perfect?
    No, which is why risk scores and manual reviews exist for “borderline” cases.

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