{"id":327,"date":"2021-12-05T11:22:00","date_gmt":"2021-12-05T11:22:00","guid":{"rendered":"https:\/\/platforms.globalpayments.com\/en\/?p=327"},"modified":"2025-03-26T22:52:31","modified_gmt":"2025-03-26T22:52:31","slug":"risk-requirements-in-payments-an-overview-of-common-payment-risk-terms-and-their-meanings","status":"publish","type":"post","link":"https:\/\/platforms.globalpayments.com\/en\/blog\/risk-requirements-in-payments-an-overview-of-common-payment-risk-terms-and-their-meanings\/","title":{"rendered":"Risk requirements in payments: An overview of end-point fraud, commercial risk and legal compliance"},"content":{"rendered":"
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If you are considering enabling payments through your SaaS platform, it\u2019s important to be aware of the three main elements\/types of fraud protection and risk management you will need to provide for your merchants.<\/p>\n\n\n\n

With any online business, there are inherent risks involved. The risk environment in online business is framed by End-point Fraud, Commercial risk and Legal Compliance. Providing solutions and preventative strategies for these is an essential part of being able to provide a positive payments experience for your clients.<\/p>\n\n\n\n

Trust is core to building a mutually successful, long-term relationship between you and your merchants. Our technology and expertise not only gives you the reliable, efficient platform for your customers\u2019 needs to grow their business, we help take responsibility for risks and offer protection to you and your merchants along this journey.<\/p>\n\n\n\n

End-point fraud<\/h3>\n\n\n\n

End-point fraud is a genuine concern for merchants. Your merchants rely on your platform to have business rules and processes that minimize fraud and resultant chargebacks. Industry surveys*<\/strong>\u00a0indicate that more than 60% of platforms cite fraud and chargebacks as an operational pain point with only one third regarding their platforms as effective in this area.\u00a0<\/p>\n\n\n\n

Different requirements and processes for your merchants apply at different stages of a customers\u2019 lifecycle. For example, customer onboarding and \u201cfirst-time checkout\u201d customers require a deeper verification process than regular customers with a successful transaction history. Similarly, customers who suddenly alter the value of their historical transaction pattern would attract another set of actions designed to protect your Merchant from potential fraudulent behavior. Our experience in the payment space ensures you secure the balance between protection of your merchants and rejection of their customers. We understand the costs of turning away good customers is incalculable. A recent survey**<\/strong>\u00a0showed that 1 in 4 customers have abandoned a purchase because of a false decline.<\/p>\n\n\n\n

Having the correct authentication and security processes\u00a0 early in the payment process can shift responsibility of fraud away from you and your merchants. We help implement these steps and insulate you against fraudulent behavior.\u00a0\u00a0\u00a0<\/p>\n\n\n\n

* 2019 Payments 2022 survey<\/p>\n\n\n\n

** 451 Research\u2019s Voice of the Connected User Landscape: Connected Customer Survey, 2019<\/p>\n\n\n\n

Commercial risk<\/h3>\n\n\n\n

Commercial risk to your business can be significant when it comes to the migration of specific verticals to a new payment solution on your platform.\u00a0 Migration speed, accuracy and security of data are vital in delivering a sublime migration experience for your merchants.\u00a0<\/p>\n\n\n\n

We seamlessly manage your portfolio, migrating your merchants\u2019 and their customers\u2019 data quickly, easily and safely through our REST API integration.<\/p>\n\n\n\n