What if my Representment is Incorrectly Declined?
And what if a successful RDR or Ethoca submission gets charged back? Read on This blog breaks down the next steps.
Acquirers, like other players in the payments ecosystem, make money through facilitating transactions—the more risk, the larger the margin. But it isn’t always as simple as underwriting every Merchant, it’s more of a balancing act. And that balance can be guided by 4 areas of risk. Let’s unpack risk and what that means for Merchants…
Acquirers follow strict guidelines set by regulating bodies and Card Associations. Like a Merchant, when an Acquirer breeches their compliance thresholds, they can be fined, see hikes in prices, or potentially lose relationships with Card Networks. Acquiring risk can be broken down into reputation, regulation, compliance, and litigation.
Examples of reputational risk can be a Merchant’s brand integrity, previous misconduct, and media scrutiny.
Examples of compliance risk can include high chargebacks, sanction violations, and poorly managed tax and accounting records.
Risk is the reason getting underwritten for a Merchant account is difficult, time consuming, and expensive. And once underwritten, Merchants are then onboarded, which includes more agreements and training for fraud prevention, chargeback reduction, regulations, data security and more.
Barrier to entry might sound negative, but it can also be a net positive in the long run. Strict thresholds and enforced risk profiles can mean a safer payments ecosystem. they help remove bad actors, reduce fraud in the marketplace, promote safer transactions, and even reduces chargebacks.
Once a Merchant is onboarded, it can be only a matter of months until they start breeching compliance thresholds—especially with high-risk Merchants in a volatile industry. This is terrible for everyone involved. Merchants have to find a new Processor, which becomes harder and more expensive once dropped. And Processors lose their stream of recurring revenue.
That’s where Slyce360 comes in.
Slyce360 acts as a force multiplier for your underwriting department.
It runs behind the scenes, letting you easily track growing payment trends in your portfolio of Merchants. If Issues start becoming problems, Slyce360 drills into the root causes, and generates prescriptive action plans.
And what if a successful RDR or Ethoca submission gets charged back? Read on This blog breaks down the next steps.
Apple Pay is accepted by over 85% of Merchants. Yet, it still feels like you need to check if Apple Pay is accepted. Let’s dig into why.
Payments can be a minefield of fraud, chargebacks, and changing requirements. Not to worry, here’s a handful of tips for Merchants getting started in Payments.
Seize the opportunity in the CNP RP space