Risk Assessment tool works as a Pre- screening solution for screening transactions which in turn helps merchants to successfully filter the frauds and allows them to transact safely. Fraud which is directly connected to chargeback is a big threat and crucial challenge in online space and it is an ever increasing the problem. Merchants are the most affected party in a chargeback/fraud in the card-not-present transactions, as they have to take full liability for losses due to fraud. The chargeback procedure exists fundamentally for consumer protection. The merchant will have to completely bare the cost of the chargeback/fraud payments. It includes Goods/Service cost, Shipping cost, Operational cost, administrative cost, Payment gateway TDR, Card association fees, penalties & loss of reputation etc., While offering new channels for transaction business, the internet has also brought in increased probability of fraud.
Ensure application security and risk mitigation by incorporating but not limited to security controls, clear segregation and proper error handling and logging.
Allow user authentication to access interface functionalities and transaction types.
Allow segregation of duties by applying four-eye principles based on transaction limits and other system functions such as changing roles and security access.
Ensure data integrity and security.
Support encryption of data at rest and in transmission.
Support encrypted network sessions.
Allow message encryption.
Protect network and application traffic by using cryptographic security.
Must have detailed audit trails and logs.