Transaction Risk Prevention

The Platform uses a risk-based approach to detect, monitor, and 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:

Payrix_TransactionRisk_Strategies.pdf Payrix_TransactionRisk_Documentation.pdf

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 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
Money Laundering	Business details: Documented details about the business’s enrollment in anti-money laundering programs Examples: AML programs, licenses, or third-party verification services

Transaction Monitoring

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

See Transaction Monitoring - Best Practices for setup steps and tips for usage.

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, stop 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

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 experiences unusual or unexpected activity. From time to time, the Risk team will request supporting documentation or information.

Reserve

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.