The Acquirer Risk Ecosystem Today

Merchant acquirers have traditionally focused their risk strategy on doing everything they can to prevent payment fraud. However, fraudsters are getting more complex, and are now using merchant accounts to conduct their activity. For acquirers, protecting against these new methods is becoming increasingly complex.

Risk can emerge on every layer of the risk ecosystem:

Cardholder/Transaction level fraud 
Stolen card credentials can be used to make all types of purchases. These range in sophistication from opportunistic fraud to syndicated attacks.

Merchant risk  
Merchant payment facilities can be used to process transactions for illicit goods/services, commit deceptive marketing strategies or initiate bust out fraud attacks.

Acquirer/Payment facilitators
Due to employee collusion during KYC, acquirers can inadvertently bring fraudulent merchants onboard.

The most effective way for acquirers to safeguard themselves from financial losses is to think bigger than fraud prevention. With a holistic approach to all aspects of risk, acquirers can consider everything from laundering to credit risk, allowing them to accelerate and scale their business in a secure manner.

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16 Aug / 2017

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