Use Case: Automate Risk Review with Policies

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You can automate risk reviews for merchants by triggering actions that perform different reviews automatically through the Payrix Pro platform and third-party risk services. This tutorial shows you how to configure policies to automate risk decisions within your portfolio.

Audience: Partner

Create a Policy

Complete all steps in the following sections to configure a policy that automates risk reviews for transaction processing or merchant boarding.

Note

You can apply policies to your business model in multiple ways. Due to the complex nature of the product, this use case does not cover all decision types. Visit Understanding Policies: Risk for more details on each specific Policy Decision.

Prerequisites

Before attempting this tutorial, you must:

Access the Policies Page

  1. Click the PLUS icon next to Risk in the left navigation panel to open a dropdown menu.

  2. Click Policies in the Risk dropdown menu to open the Policies page.

Add Your New Policy

To create your policy:

  1. Click ADD POLICY in the upper-right corner.

  2. Enter a name for the policy.

  3. Select the stage for the policy to apply:

    • Create Entity: When an entity is created

    • Pre-board: When the entity is created, but not yet boarded

    • Underwriting: When an entity is being risk-reviewed for boarding

    • Post-board: After the entity has passed risk review and completed boarding

    • Transaction: For any transaction processing event

    • Activation: When a payment terminal is activated in a payment transaction

    • Auth: When a credit card is authorized for a transaction

    • Post-Auth: After a credit card has already been authorized for a transaction

    • Capture: When a credit card payment is captured

    • Refund: When a transaction refund is issued

    • E-Check: When an eCheck transaction is processed

    • Change Review: When a bank account change request occurs from an entity

  4. Select the target of the policy:  

    • Divisions: A partner portfolio

    • Merchants: A specific merchant or partner entity

  5. Select the status of the policy:

    • Active: The policy is actively applied.  

    • Inactive: The policy will not be applied until changed to Active.

Set Your First Decision

To configure your policy with a decision:

  1. Click Add Decision in the upper-right corner.

  2. Select a decision from the available risk services. Then, click Next.

    Note

    Some policy stages are not compatible with specific decision actions. The portal will identify if your configuration is invalid with your policy stage.

  3. Add sub-decisions with applicable Subtypes, Operators, and Values for the decision type. Then, click Next.

  4. (Optional) Add any rules desired using the same parameter types used in the previous step to further refine the decision action trigger.

  5. Click Create to finish adding the decision.

Add More Decisions with Dependencies and Failover Dependencies

To create additional decisions to further refine the policy trigger criteria using the original decision as a dependency:

  1. Repeat steps 1-4 from the Set Your First Decision section. Then, click Next.

  2. (Optional) Select your first decision from the Dependencies dropdown menu.

    • This dependency will require this new second decision to rely on the original first decision to return the expected response before initiating the action.

  3. (Optional) Select your first (or another) decision from the Failover dropdown menu.

    • This Failover Dependency outlines another decision (the first) to resort to if this decision fails for the designated Fail Reason.

Important!

Risk decisions and notifications will not work outside of the Payrix Pro platform gateway. If you have questions, contact your Partner Experience Manager.

Result: Your policy is now configured. You created a secondary decision within your policy to further refine when it will take the set action, using your first decision’s response as the condition for whether to apply the second decision before the policy takes effect. You also added a contingency plan for what this second decision should do if it fails for your given reason. You can repeat these steps to refine your policy as much as needed and automate as many aspects of merchant boarding or transaction processing as you’d like.

Next Steps

After configuring your automated risk policies for your portfolio, review the following guides for related topics:

Additionally, view the following content in the Risk and Compliance Guide: