Transaction Risk Prevention

The Platform uses a risk-based approach to detect, monitor, and to reduce uncertainty associated with payment processing. These strategies provide comfort to Partners and Merchants when they are conducting daily business.

You can see criteria below or within our one-pagers:

Documentation Requests

An easy way to handle, or in some cases prevent, common Transaction Risk types is to request specific documents to support legitimate transactions.

Transaction Risk Type

Transaction Risk Type
Transaction Fraud	Transaction Details: Documentation to support a legitimate transaction. Note: Must include buyer contact information. Examples: Invoice, Contract, or Work Order. Identification Information: Government Issued ID or Passport. Funds Confirmation: Validate that buyer has funds available to avoid return. Example: Bank Guarantee
Credit Risk	Transaction Details: Documentation to support a legitimate transaction. Note: Must include buyer contact information. Examples: Invoice, Contract, or Work Order. Merchant Financial Liquidity Confirmation: Validate the merchant has the funds offset chargebacks, returns, disputes. Examples: Cash Flow statements or Bank Account Statements Supplier documentation and/or proof of ability to fulfill order Proof of shipping/delivery Transaction Processing History
Merchant Fraud	Transaction Details: Documentation to support a legitimate transaction. Note: Must include buyer contact information. Examples: Invoice, Contract, or Work Order. Business Information: Documents to support a legitimate business. Examples: Articles of Incorporation, Business license, or Secretary of State certification. Identification Information: Government Issued ID or Passport. Documented Explanation: A written explanation for a Merchant’s choice of risk compliance standards. Examples: Listed Merchant Controls in place, or reason for payment, etc.
Money Laundering

Transaction Monitoring

Our technology and architecture uses hundreds of different data sources to manage risk both and the portfolio and account level and to drive real-time decisions for transaction monitoring.

Transaction Monitoring related rules in the Payrix portal have 3 separate actions depending on the level of mitigation:

Block

Prevents certain actions from occurring. A block could stop transactions from processing, funds from exiting, or prevent all transactional activity on the merchant account. A block is typically placed when the activity is believed to be too risky to continue or requires additional verification before it can continue.

Hold

“Hold” will be used when a transaction requires a manual review. This can occur if the transaction amount exceeds the amount that was previously approved during onboarding or if the account experiencing unusual or unexpected activity. From time to time, the Risk team will request supporting documentation or information.

Reserve

“Reserve” is used as a safeguard to prevent unplanned chargebacks or returns. When there is a reserve on an account, the merchant can continue to transact but will not have access to the funds in the reserve until the risk of chargeback or return has passed.