Why does a payment aggregator need dedicated teams for fraud detection, underwriting, and risk analysis?
Payments
Asked by Question Bot04/Mar/20141 answer
1 Answer
F
Faisal Khan
Answered 04/Mar/2014
Even a payment aggregator who is providing such services is being underwritten. In providing on-wards services to Merchant, the aggregator is responsible for all the fraud that happens and is liable for it to their upstream acquiring bank.
Its in their (aggregator's) best interest to mitigate fraud and risk before it goes down-channel.
When you are aggregating on behalf of 100/1000s of merchant, you want to have a correlated view of the over all transactions being routed and processed through your ecosystem. You need to have strong fraud controls so that loopholes are not exploited and fraud levels are kept below the accepted threshold.
Your risk department would ensure that your exposure towards the transactions is well within the operating and financial guidelines you have set forth.
Its in their (aggregator's) best interest to mitigate fraud and risk before it goes down-channel.
When you are aggregating on behalf of 100/1000s of merchant, you want to have a correlated view of the over all transactions being routed and processed through your ecosystem. You need to have strong fraud controls so that loopholes are not exploited and fraud levels are kept below the accepted threshold.
Your risk department would ensure that your exposure towards the transactions is well within the operating and financial guidelines you have set forth.