---
title: "Use Decisions for Risk Mitigation"
slug: "use-decisions-for-risk-mitigation"
updated: 2026-03-07T00:25:03Z
published: 2026-03-07T00:30:27Z
stale: true
---

> ## Documentation Index
> Fetch the complete documentation index at: https://resource.payrix.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Use Decisions for Risk Mitigation

**Decisions**are a configuration of rules enabling partners to set specific risk criteria, such as Card Verification Value (CVV) Result or Bank Account Authentication, to determine the automated action that should occur to a transaction or entity.

Automating manual risk decisions and actions, providing greater protection from risk liabilities, and ensuring your portfolio adheres to your preferred risk standards and guidelines make decisions an invaluable tool.

Decisions provide granular configuration settings to apply decision actions including Block Authorization, Hold for Manual Review, and Send Funds to Reserve. This precision and ease make it effortless to maintain compliance.

Decision configurations are made up of **decision rules**, **decision actions**, and **conditional rules**.

- [Decision Rules](/v1/docs/using-decisions-for-risk-mitigation#decision-rules): The entity or transaction behavior that must occur to trigger the Decision Action
- [Decision Actions](/v1/docs/using-decisions-for-risk-mitigation#decision-actions): The action that takes place after the Decision Rule has been triggered
- [Conditional Rules](/v1/docs/using-decisions-for-risk-mitigation#conditional-rules): The additional custom criteria applied to the Decision Rule trigger

## Automate Risk Decisions for a Group

Complete all steps in the following sections to automate actions taken based on risk-based behaviors that occur within a group.

### Set Up Decision Rules and Actions

To set up a Decision Rule and Action:

1. Select [Groups](/v1/docs/groups-partners) under the [Management](/v1/docs/management-partners) in the left navigation panel.
2. Select a listed Group to navigate to the [Group Profile](/v1/docs/group-profile-partners).
3. Select the **Decisions** tab, then click **ADD DECISION**.
4. Select a category from the **SELECT DECISION TYPE** dropdown menu and the desired Decision from the **SELECT DECISION** dropdown menu. See the [Decision Rules](/v1/docs/use-decisions-for-risk-mitigation#decision-rules) section for information about each decision type.
5. Click **Continue** to proceed with configuring the decision details.
6. Enter either a number, dollar amount, percentage, or valid value (where applicable), then select the desired Decision Action under the **Take this Action** dropdown menu. See the [Decision Actions](/v1/docs/use-decisions-for-risk-mitigation#decision-actions) section for information about each action.
7. Set each Decision Rule assignment as desired for users, entities, transactions, dates, or transaction amounts.
8. Click **Continue** to complete the decision creation.

### Set Up Conditional Rules

After setting up your core Decision Rule and Action, you can add additional parameters or criteria using Conditional Rules. See the [Conditional Rules](/v1/docs/using-decisions-for-risk-mitigation#conditional-rules) section for more information.

> [!NOTE]
> **Note**
> 
> You cannot begin a conditional rule using the *and* logic. This is a known platform issue that is currently being addressed.

To add additional criteria to the Decision Rule or another existing Decision Rule:

1. Select a Decision to open the Active Decisions page.
2. Select the rule type from the headings. Access the [Decision Rules](/v1/docs/use-decisions-for-risk-mitigation#decision-rules) section for more information about the rule types.
3. Click the gray triangle to expand the desired Decision Rule.
4. Set the Conditional Rule parameter, either a number, dollar amount, percentage, or valid value (where applicable).
5. Set each Conditional Rule assignment as desired for users, entities, transactions, dates, or transaction amounts (where applicable).
6. (Optional) Click **ADD RULE GROUP**to add another conditional rule.
7. Click **SAVE**.

## Decision Rules

Decision Rules refer to the specified risk criteria required to trigger a Decision Action.

> [!NOTE]
> **Note**
> 
> Both Decision Rules and Conditional Rules use an *if, then*logic that determines when the Decision Action takes place.

Five rule types provide their own sets of specific Decision Rules:

- **Consumer Transaction Risk:** Risk behaviors related to specific consumer transactions
- **Merchant Transaction Risk:** Risk behaviors related to an overall merchant
- **Boarding:** Risk behaviors related to merchant boarding
- **Refunds:** Risk behaviors related to merchant refund issuance
- **Watchlists:** Risk behaviors related to OFAC watchlist and other custom watchlist configurations

**Example:**

- **Decision Rule:** Merchant Transaction Risk > Inactive Merchant
- “***If*** an inactive merchant attempts a transaction, [*then*] Block Authorization.”

### Consumer Transaction Risk Rules

See the following table for a complete list of all Consumer Transaction Risk Decision Rules:

| **Rule** | **Description** | **Parameter Type** |
| --- | --- | --- |
| Failed Authorizations (Per IP) | IP Address fails authorization ***this number***of times. | Number |
| Failed Authorization Ratio (Per IP) | IP Address has a failed authorization ratio higher than ***this percentage.*** | Percentage % |
| Transaction Fraud Score | Transaction Fraud Score is below ***this number.*** | Number |
| Card Verification Value (CVV) Result | Card Verification Value (CVV) result is: | Valid Values: - Unavailable - Mismatch |
| Address Verification Service (AVS) Result | Address Verification Service (AVS) result is: | Valid Values: - Unavailable - Mismatch - Partial Match |
| Advanced Address Verification Service (AAVS) Result | Advanced Address Verification Service (AAVS) result is: | Valid Values: - Unavailable - Mismatch - Partial Match |
| Duplicate Transactions | Merchant attempts a transaction with ***these***identical values: | Valid Values: - Payment, Merchant, Type and Total - All above + Order ID and Terminal ID - All above + Customer ID |

### Merchant Transaction Risk Rules

See the following table for a complete list of all Merchant Transaction Risk Decision Rules:

| **Rule** | **Description** | **Parameter Type** |
| --- | --- | --- |
| Failed Authorizations | Merchant exceeds ***this number***of failed authorizations. | Number |
| Failed Authorization Ratio | Merchant has a failed authorization ratio higher than ***this percentage.*** | Percentage % |
| Max Sale Amount | Merchant attempts a sale over ***this amount.*** | Dollar Amount (Number) |
| Over Monthly Average Ticket Count | Merchant attempts a transaction ***this percentage***over the Average Transaction. | Percentage % |
| Merchant/CC Combo | Merchant successfully charges the same card more than ***this number***of times. | Number |
| Inactive Merchant | An inactive merchant attempts a transaction. | N/A |
| Number of Times Merchant/CC Number(s) Fail | Merchant unsuccessfully charges the same card more than ***this number***of times. | Number |
| Captures with no Authorizations | Merchant exceeds ***the number***of captures allowed without an authorization. | Number |
| Capture above Authorization Amount | Capture exceeds auth by ***this percentage.*** | Percentage % |
| Card Matches Merchant or Member | MATCH score is below ***this number.*** | Number |
| Limit | The count of the fields over the selected time frame exceeds ***this number.*** **Note**: If Transaction Amount is used, the decision will only trigger on a Transaction ABOVE the Transaction Amount. | Number |

### Boarding Rules

See the following table for a complete list of all Boarding Decision Rules:

| **Rule** | **Description** | **Parameter Type** |
| --- | --- | --- |
| Business Authentication | Business Authentication Score is Below ***this number.*** | Number |
| Advanced Business Authentication | Advanced Business Authentication Score is Below ***this number.*** | Number |
| Basic Owner Authentication | Owner Authentication Score is Below ***this number.*** | Number |
| Advanced Owner Authentication | Advanced Owner Authentication Score is Below ***this number.*** | Number |
| Ownership Authentication | Ownership Correlation Authentication score is below ***this number.*** | Number |
| Entity Fraud Score | Entity Fraud Score is below ***this number.*** | Number |
| Bank Account Authentication | Bank Account Authentication score is less than ***this number.*** | Number |
| Bank Account Verification | The bank account is not verified. | N/A |

### Refund Rules

See the following table for a complete list of all Refund Decision Rules:

| **Rule** | **Description** | **Parameter Type** |
| --- | --- | --- |
| Max Refund Amount | Merchant attempts a refund over ***this amount.*** | Number |
| Refunds to Sale Ratio | Merchant's refunds to sales ratio is more than ***this percentage***of sales. | Percentage % |
| Inactive Merchant | An inactive merchant attempts a transaction. | N/A |
| Max Refunds with no Associated Sales | If merchant exceeds ***this number***of refunds with no associated transaction. | Number |
| Transaction Fraud Score | If Transaction Fraud Score is below ***this number.*** | Number |
| Duplicate Transactions | If merchant attempts a transaction with ***these***identical values: | Valid Values: - Payment, Merchant, Type and Total - All above + Order ID and Terminal ID - All above + Customer ID |
| Balance Refund Limit | If a refund is processed causing the account balance to fall below ***this number.*** | Number (Dollar Amount) |

### Watchlist Rules

See the following table for a complete list of all Watchlist Decision Rules:

| **Rule** | **Description** | **Parameter Type** |
| --- | --- | --- |
| OFAC Watchlist | OFAC Watchlist hit score is less than ***this number.*** | Number |
| {*Custom Watchlist Name*} | {*Custom Criteria*} | N/A |

## Decision Actions

Decision Actions refer to the specific automated process that should take place when the specific criteria are met.

> [!NOTE]
> **Note**
> 
> Decision Actions require Decision Rule, (*if*) to trigger one of the available actions (*then*).
> 
> **Example**: “*If* an inactive merchant attempts a transaction, [*then*] Block Authorization.”

Three available Actions can take place when a Decision Rule is triggered:

- **Block Authorization:** Changes a high-risk transaction’s status to `Failed` to mitigate transaction risk
- **Send Funds to Reserve:** Creates a Reserve on a specified amount of funds to allow transaction risk events and all other applicable rule types to be vetted before disbursing the funds
- **Hold for Manual Review:** Creates a Hold that either prevents a high-risk merchant from boarding or a transaction from reaching a `Captured` or `Settled` status

**Example:**

- **Decision Action**: Take this ACTION > Block Authorization

“*If* an inactive merchant attempts a transaction, [***then***] Block Authorization.”

See the following table and sections for information about Decision Actions:

| **Action** | **Description** | **Applicable Rule Types** |
| --- | --- | --- |
| Block Authorization | Indicates that the specific conditions have not been met and the transaction status will be `Failed` automatically blocking the transaction. *Block Authorization* is specific to transaction processing. | - Consumer Transaction Risk - Merchant Transaction Risk |
| Send Funds to Reserve | Indicates that a merchant has been flagged above a specific threshold or percentage and will automatically create a reserve. | - Consumer Transaction Risk - Merchant Transaction Risk - Boarding - Refunds - Watchlists |
| Hold For Manual Review | Indicates unclear or insufficient data submitted from merchants during boarding or flagged transactions processed or attempted by the merchant. | - Consumer Transaction Risk - Merchant Transaction Risk - Boarding - Refunds - Watchlists |

### Block Authorization

The platform validates the integrity of responses it receives from an issuer. If the response criteria don’t meet the platform-defined criteria, a Reverse Authorization will be issued to reject it from processing.

This event occurs within a second of the transaction approval and the original transaction will be marked as **Failed**. In this event, you will be able to see in the **Transaction Stream** that the transaction was reversed.

> [!NOTE]
> **Note**
> 
> This decision is primarily used for AVS and CVV validation.
> 
> If you are not able to provide AVS data (`zip` and `address1` data), please reach out to your Partner Experience Manager to set a timeline on implementation.

### Hold for Manual Review

This will prevent the merchant from boarding and send an alert to Platform Underwriting to review the merchant account. Upon review, additional documentation or clarification may be requested from the merchant to remove the hold for a transaction or boarding.

> [!NOTE]
> **Note**
> 
> A held transaction will not Capture or Settle.
> 
> Platform Risk will review transactions and may request supporting documentation or information to allow that transaction to settle.

Transaction amounts that severely exceed the estimated average transaction amount listed by the merchant in their Signup Form, or suspicious activity; such as excessively large transaction volume not previously identified.

Our Risk team will review a transaction and may request supporting documentation or information to allow that transaction to settle.

### Send Funds to Reserve

Reserves can be leveraged in instances where suspected money laundering, fraudulent activity, or prohibited business activities are occurring.

Reserved merchants indicate the merchant’s ability to transact, but not fund any of the transactions in their Available Balance.

This is typically applied when a merchant is flagged above a certain threshold, such as a TIN match without at least a 50% owner authentication match. Platform Underwriting may request additional information to qualify the merchant (depending on their internal verification).

> [!NOTE]
> **Note**
> 
> A reserved transaction will Capture and Settle.
> 
> That reserved transaction, however, will *not*be funded until reviewed by Platform Risk.

## Conditional Rules

Conditional Rules refer to the rule logic applied as extra criteria aside from the primary Decision Rule, to configure a more precise final Decision Rule logic.

> [!NOTE]
> **Note**
> 
> Conditional Rules are linked to primary Decision Rules using an *and if*logic.
> 
> - Conditional Rules use the same *if, then*logic as standard Decision Rules. However, it does not offer an additional *than*logic, because you’ve already configured it with a Decision Action.

**Example:**

- **Decision Rule:** Merchant Transaction Risk > Number of Times Merchant/CC Number(s) Fail
- **Decision Action:** Take this ACTION > Block Authorization
- **Conditional Rule:** Consumer Transaction Risk > Transaction Fraud Score

“*If* merchant unsuccessfully charges the same card more than 2 times ***and if*** their Transaction Fraud Score is below 85, [*then*] Block Authorization.”

## Related Articles

After creating your automated risk decision for a group, review the following articles for related issues:

- [Hold a Transaction to Respond to Suspicious Activity](/v1/docs/hold-a-transaction-to-respond-to-suspicious-activity):****Manually create holds on transactions that are suspicious or otherwise high-risk.
- [Hold a Merchant Boarding to Perform a Review](/v1/docs/hold-a-merchant-boarding-to-perform-a-review): Place a new merchant’s boarding status to Manual Review to perform a risk review before boarding.
- [Automate Risk Review with Policies](/v1/docs/automate-risk-review-with-policies): Use the policies feature to automate future transaction holds or merchant boarding reviews with different risk criteria.

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

- Read [Partner Transaction Monitoring Best Practices](/v1/docs/partner-transaction-monitoring-best-practices) for guidance on identifying transaction risks.
- See the [Merchant Monitoring Risk Guide](/v1/docs/merchant-monitoring-risk-guide) for steps to mitigate risks associated with merchants’ payment transactions and other activities.
- Read [Merchant Onboarding Risk Best Practices](/v1/docs/merchant-onboarding-risk-best-practices) for guidance on identifying merchant boarding risks.
- Read the [Merchant Monitoring Risk Guide](/v1/docs/merchant-monitoring-risk-guide) for steps to mitigate risks associated with boarding merchants.

The movement of funds between a customer (cardholder or eCheck account holder) and a merchant to purchase a good or service.

1. Any merchant or partner account operating on the Payrix Pro platform.
2. In API terms, the top-level resource for any merchant or partner account.

A risk automation configuration available to be set on Groups of entities to apply a review, and action/inaction of specified risk criteria as a decision rule, using the outcome of the risk review to determine whether to execute the decision action.

The entity activity, score, or criteria set by the creator of the decision and required by the Group's entities to trigger a decision action.

The specified automated process that occurs when the set risk review criteria or score threshold is met.