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Interpretable vs Learned Encoders for High-Cardinality Fraud Detection

arXiv cs.LG ↗ · 2026-07-02 Cached

This paper presents a controlled comparison of seven categorical encoding methods on the IEEE-CIS fraud dataset, evaluating accuracy, interpretability, and computational trade-offs with a fixed LightGBM learner, finding that entity embeddings achieve the highest AUC-ROC but no encoder dominates both metrics.

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