Using Decisions for Risk Mitigation
Overview: This Implementations resource outlines decision actions including Block Authorization, Hold for Manual Review, and Send Funds to Reserve.
We support three types of decision actions on the platform:
Hold for Manual Review
Send Funds to Reserve.
Block Authorization is specific to transaction processing and will fail a transaction if it doesn’t meet specific conditions. It is applied based on the issuer response to a transaction request, such as the address or CVV failing verification.
The platform validates the integrity of responses it receives from an issuer. If the response criteria doesn’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: This decision is primarily used for AVS and CVV validation.
If you are not able to provide AVS data (
address1 data), please reach out to your Relationship Manager to set a timeline on implementation.
Hold for Manual Review
Hold for Manual Review is used for boarding & transaction processing and indicates insufficient or unclear data submitted from merchants during boarding, or flagged transactions processed or attempted by the Merchant.
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: 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
Send Funds to Reserve is used for boarding & transaction processing and safeguards from unplanned liabilities such as chargebacks or fraudulent claims against the merchant.
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 flags above a certain threshold, such as a TIN match without at least 50% owner authentication match. Platform Underwriting may request additional information to qualify the merchant (depending on their internal verification).
Note: A reserved transaction will Capture and Settle.
That reserved transaction, however, will not be funded until reviewed by Platform Risk.