Outdated fraud detection systems are costing South African banks an estimated $160,000 annually in lost interchange revenue, according to a report by BPC. The research reveals that rigid, legacy systems often misidentify legitimate card transactions as fraudulent, resulting in false declines. Beyond the direct loss of interchange fees, these failures negatively impact customer loyalty, as users frequently switch payment methods after an unsuccessful transaction. The report suggests that banks must transition to modern, real-time risk-scoring systems to mitigate these revenue leakages and enhance user experience.