Online Payment Risk: Payment risk is considered as a loss if a merchant or a company handles a high volume of payments and they fail to comply with the contract.
There are many types of operational risks:
- Inadequate and Failed Information Systems
- Processing Errors
- Fraud and Chargebacks
- Breaches in Internal Sources and Control
- Commercial Disputes
- Unforeseen Calamity.
Since the online credit card payments form the foundation for digital foundation services, an approach to managing and regulating their risk is the first step. A company should work for an approach for assessing the economic impact of risk from the perspectives of customers, providers, and self.
A high level of transactional risk exists with internet products, particularly if the lines of business are not planned and implemented properly. That is the reason when banks underwrite for high-risk business or any business, they always go for a check whether the business is properly planned and implemented or not, whether its website is PCI compliant or not.
Management of Risk:
A merchant needs to have a quantitative approach to risk management to identify and manage it in online payment processing.
A merchant needs to identify the most critical risks by tying them to business processes.
Measure the size of the risk and evaluate the likelihood of it, if it is to occur again.
Quantify the severity of the identified risk, if they occur
Address - 10300 49th Street N Suite 427 Clearwater, Florida 33762
Email Id _ info@merchantstronghold.com
Contact us - +1 (888) 622-6875.
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