Retail fraud at in-store Point of Sale (POS) terminals remains a pressing challenge, as current systems often process payments without verifying cardholder identity against customer records. This paper examines how artificial intelligence (AI) can enhance fraud prevention by matching credit card holder names with loyalty profile data in real time. With fraudulent transactions outpacing traditional verification, we propose an AI-powered solution for POS environments, employing natural language processing, anomaly detection, and behavioral analysis to validate identity during checkout. The system adapts to emerging fraud patterns, reducing unauthorized payments while ensuring a seamless customer experience. We explore its integration into POS workflows, highlighting benefits like improved transaction security, fewer chargebacks, and operational efficiency. This study provides retailers and payment processors with a practical framework to deploy AI at the POS, strengthening defenses and building trust in digital retail while preserving customer experience.