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RISK is inherent in

any business process,

especially in your

payments environment.

It's important for you to

Know Your Customer

and for us to

Know Your Business.

A few thoughts about Risk Management:


Our most successful merchant relationships are with those willing to hold conversations about risk in their payment environment – so it matters that you care to know your customers as much as we want to know our merchants.   


Operational Risk Management goes beyond trust.  Risk assessments allow us to work with merchants allowing them to take [and keep] control of their payments.  The best way to do so is to avoid chargebacks and disputes, and minimize risk holds in funding your account.

When you have a deeper, meaningful relationship with your merchant services partner, it places the whole payments process on the threshold of excellence that drives transparency and reliability. Credit card processing is a risky business - and payments in today’s economy are an underwriting risk for banks, processors and their acquirers.  Your processor must provide a level of reliability, accuracy, and timeliness demanded by your enterprise in, what many would call, an erratic economy.


Fraudulent Transactions by Identity Theft




To learn more about the impact payments have on operational and transactional risk management, please contact us.

Friendly Fraud

Arguably, identify theft and fraud are among the #1 concern in enterprise management. Common warning signs of fraud to consider include:


What do these mean to you? See below:






Chargeback Rates.  Bankcard brands monitor the rate of chargebacks to a merchant and if excessive they may deny your business the ability to take payments.  An acceptable rate of chargebacks depends on your type of business and your risk tolerance but chargebacks that exceed 0.50% of your payment transactions often indicate you have a fraud problem.


Declined transactions.  Such a response by the issuing bank means Do Not Honor. Especially for online merchants, the estimated fraud rate is 0.9%, however, the actual decline rate for shopping carts is nearly 3%.  Fraud screening is necessary to sort through orders and distinguish “good” from “bad” orders with certainty.


Manual Reviews. When your chargebacks increase, many enterprises fight back with manual reviews.  The cost of this intervention raises labor costs and may interfere with customer engagement and distract them from wanting to come back to you.


Refunds.  Excessive refunds may lead to an increase in chargebacks and disputes.  Besides the cost of money [unreimbursed discount fees,] the cost of unusable inventory and “lost” sales affects the entire order-to-cash cycle.


Affiliate Turnover.  Everyone wants to earn a quick buck or two and many will turn to online affiliate sales.  Organized down-line associates make fraudulent purchases, which, in turn, generate fraudulent commissions payable.  Then, the entire affiliate scheme is unable to pay legitimate commissions due to chargebacks and refunds.


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