Payment Risk 101

Present the payment basics, we are going to learn about open-loop systems, closed-loop systems, push payments, pull payments and payment methods

Introduce the card system, we will take about:

• Key players: issuer, card network, acquirer

• How card transaction process: authorization and Clearing & Settlement

• Card Present Transaction vs Card Not Present Transaction

• Credit/Debit Card Interchange Fee

• Card Risk

Introduce the chargeback and refund, we will talk about:

• What's chargeback/refund

• Why care about chargeback

• How to reduce chargeback

Introduce the ACH system, we will take about:

• Key players: ODFI, Operator, RDFI

• ACH Types: ACH Credit Transaction vs ACH Debit Transaction

• ACH Interchange Fee

• ACH Risk

We will talk about at the risks associated with payment:

• ATO/SF/NSF/Merchant Risk

talk about fraud programs like VDMP, VFMP and EFM.

talk about 3DS2.0, PSD2 and SAC

talk about stats 101 for payments like hypothesis and confidence interval

talk about confusion matrix

talk about popular payment risk models like decision tree and random forest

Introduce the basic ATO concepts, We will talk about:

• What does ATO mean

• How could it happen

• Why ATO prevention is important

Introduce how to identify ATO attacks, We will talk about:

• Typical ATO examples

• What variables we can use to catch ATO attacks

• How could fraudsters avoid our risk checks

Introduce what risk actions we have, We will talk about:

• Decline

• Authentication

  • Meaning

  • Types

  • Pros and Cons

• Hold

• Manual Review

Introduce ATO real world examples, We will talk about:

• Some real world ATO examples

• How to design risk rules

Introduce the basic SF & NSF concepts, We will talk about:

• What does SF & NSF mean

• How could SF or NSF happen

• Why SF & NSF prevention is important

Introduce how to identify SF & NSF attacks, We will talk about:

• Typical SF & NSF examples

• What variables we can use to catch SF & NSF attacks

• How could fraudsters avoid our risk checks

• CVV and AVS

Introduce what risk actions we have, We will talk about:

• Decline

• Authentication

  • CVV

  • AVS

  • Random Deposit

  • Yodlee

• Hold

• Manual Review

Introduce SF real-world examples, We will talk about:

• Some real-world SF and NSF examples

• How to design SF and NSF risk rules

talk about family fraud basic knowledge

talk about How to identify FF

Talk about how to better deal with FF

Introduce the basic Merchant Risk concepts, We will talk about:

• What does Merchant Risk mean

  • Fraud

    • IVR

    • SNAD

  • Credit

Introduce how to identify Merchant Risk attacks, We will talk about:

• Typical Merchant Risk examples

• What variables we can use to catch Merchant Risk attacks

  • Merchant Segment

  • Delivery Days

• How could fraudsters avoid our risk checks

Introduce what risk actions we have, We will talk about:

• Decline

• Hold

• Manual Review

• Reserve

Introduce Merchant Risk real world examples, We will talk about:

• Some real world Merchant Risk examples

• How to design risk rules