To protect the merchant, the customer & the company from losses due to fraud by monitoring, analyzing & determining the fraud.
Salesperson sends out an email to RISK Management Team on support@Swipelocal.io for pre onboarding check. Pre-onboarding due diligence is always done before onboarding a Merchant. Steps for the same are explained under Merchant Audit.
- To check the age of the website created & to check if the domain is registered & exists
- To check when the company was incorporated, associated directors, etc
Comments OR Reviews on Social Platform i.e. (Negative news on the Merchant is carried out based on social forum/Internet searches)
Depending on products/services offered
Obtain details on Ticket Size/volume of transactions
We evaluate & ensure that Merchant is in good/legitimate business practice, depending on the Merchant Legal entity, financial status, nature of business activity and their location, etc.Specially Merchants from north are thoroughly verified & if the Domain is recently registered (In such cases we allow by holding the pay-out for verification of transaction pattern)
Procure Valid Documents/License/Certificate to run a business
Counterfeiting of brands such as luxury fashion brands OR replica products are not supported by us
Last 6 months Bank Statement is collected (to check if any chargebacks history)
If there are any Grammar mistakes OR the website features don’t look to be legitimate
– such Merchants are REJECTED at first instance itself
Action taken (Approved OR Disapproved)
MCC is defined as per the business offering
Security deposit from fraud merchant/s (If Dicey/ Risky)
Setting of Rolling reserves
Prohibited List/ Restricted industries are not supported at Swipelocal.
OFAC is used (only for International Merchants) to identify, detect entities which are in the international lists
Checks on below Mandate policies: - SSL Certified, About Us, Terms and Conditions, Privacy policy, Refund Policy, Shipping/Cancellation Policy, Entity name with address (Registered in India), IndianContact details on website, Email address, Complete description of products with pricing
We categorize risk in two categories i.e. Low Risk and High Risk
1. LOW RISK
All details entered by the customer are correct with proper ticket size - such orders are considered as No Risk.
2. HIGH RISK
This is a warning that something in the order is either, incorrect data/incomplete / customer attempts the order from a negative country
If the order is categorized as a high risk, an email is sent to Merchant for the manual authorization wherein their customer will have to comply with the mandate documents - until then the funds for the particular transaction will be on hold.
Transaction Monitoring: The procedure followed at Swipelocal is as below: -
Each and every transaction processed, is scanned for the risk factor and flagged basis our System checks & manual identification of risk which is verified by strong members of Risk Management Team
Velocity checks done on Card with a limit of max 5 transactions
Velocity checks are set based on Email Id’s with a limit of max 5 transactions
Velocity checks done on No. of Orders Processed, No. of Amount set. According to this velocity user will not be allowed to transaction if the threshold is exceeded
Swipelocal FRM team analysis each & every transaction successful transaction
Procure Valid Documents/License/Certificate to run a business
Transactions are reviewed, based on different parameters for eg: - transaction pattern (Customer Email Id, Contact Number is checked on TrueCaller (If it is SPAM), Multiple transactions from a single User, Multiple transactions using a single Card by different users, Spurt in transaction volume, checking transaction value (when the ticket size does not match with the service / Product) & so on …
On higher amount customer is being outcalled to confirm the transactions (whether they have done or not). Also, to check the services Merchant are involved & if proper services are received by them.
If Merchant is found into wrongful business activities, same will be highlighted & asked to provide clarification along with supporting’s, if we do not receive any single mail or call from suspicious merchant then deactivation action will be taken - to ensure that the organization’s reputation and revenue are protected.
Transactions suspected during manual checks, will be asked for documentation (Invoice copy, Customer acceptance email from registered email id, photo id proof, etc.) and basis verification the release status will be decided
If Genuineness of the transaction proved, then pay-out is settled to Merchant depending on their payout Cycle
FTS Ratio is being calculated weekly - for maintaining fraud ratio so that it does not cross threshold of 1 % set by the Card Association.
Any Merchant who is targeted by the Fraudster, are explained the consequences on accepting such Frauds, so that the transactions are not serviced/delivered along with measures/suggestions for controlling fraud/chargeback
1. Adult goods and services which includes pornography and other sexually suggestive materials (including literature, imagery and other media); escort or prostitution services
2. Alcohol which includes Alcohol or alcoholic beverages such as beer, liquor, wine, or champagne
3. Body parts which includes organs or other body parts
4. Bulk marketing tools which includes email lists, software, or other products enabling unsolicited email messages (spam)
5. Cable descramblers and black boxes which includes devices intended to obtain cable and satellite signals for free
6. Child pornography which includes pornographic materials involving minors
7. Copyright unlocking devices which includes Mod chips or other devices designed to circumvent copyright protection
8. Copyrighted media which includes unauthorized copies of books, music, movies, and other licensed or protected materials; Copyright infringing merchandise
9. Products labelled as "tester," "
not for retail sale," or "not intended for resale"10. Copyrighted software which includes unauthorized copies of software, video games and other licensed or protected materials, including OEM or bundled software
11. Counterfeit and unauthorized goods which includes replicas or imitations of designer goods; items without a celebrity endorsement that would normally require such an association; fake autographs, counterfeit stamps, and other potentially unauthorized goods
12. Products that have been altered to change the product's performance, safety specifications, or indications of use
13. Drugs and drug paraphernalia which includes hallucinogenic substances, illegal drugs and drug accessories, including herbal drugs like salvia and magic mushrooms
14. Drug test circumvention aids which includes drug cleansing shakes, urine test additives, and related items
15. Endangered species which includes plants, animals or other organisms (including product derivatives) in danger of extinction
16. Government IDs or documents which includes fake IDs, passports, diplomas, and noble titles
17. Hacking and cracking materials which includes manuals, how-to guides, information, or equipment enabling illegal access to software, servers, websites, or other protected property 18. Illegal goods which includes materials, products, or information promoting illegal goods or enabling illegal acts
18. Miracle cures which includes unsubstantiated cures, remedies or other items marketed as quick health fixes
19. Offensive goods which includes literature, products or other materials that: a) Defame or slander any person or groups of people based on race, ethnicity, national origin, religion, sex, or other factors b) Encourage or incite violent acts c) Promote intolerance or hatred
20. Offensive goods, crime which includes crime scene photos or items, such as personal belongings, associated with criminals
21. Pyrotechnic devices (apart from the ones mentioned in the restricted category), hazardous materials and radioactive materials and substances
22. Tobacco and cigarettes which includes cigars, chewing tobacco, and related products. Electronic cigarettes (e-cigarettes)
23. Traffic devices which includes radar detectors/jammers, license plate covers, traffic signal changers, and related products
24. Weapons which includes firearms, ammunition, knives, brass knuckles, gun parts, and other armaments
25. Matrix sites or sites using matrix scheme approach/Ponzi/Pyramid schemes
26. Work-at-home information
27. Any product or service which is not in compliance with all applicable laws and regulations whether federal, state, local or international including the laws of India
28. BPO services
29. Surgical products on B2C model
30. Immigration services (Does not include Consultation)
31. Loose diamonds
32. Guaranteed Employment Services
33. Religious products which are making false claims or hurting someone's religious feelings
34. Adoption agencies
35. Pawnshop
36. Esoteric pages, Psychic consultations
37. Telemarketing (Calling list, selling by phone for example travel service, overall sales)
38. Credit Counselling/Credit Repair Services
39. Get Rich Businesses
40. Bankruptcy Services
41. Websites depicting violence and extreme sexual violence
42. Bestiality
43. Fireworks
44. Cryptocurrency Trading
45. Sale of Live animals
46. Dating
1. We are in process of implementing a Scoring system (from 1 to 10) ------- Score with & below 5 will be considered as “Genuine” & this will be based upon different variable’s such as (Multiple Velocity Checks, Backlist control Mapping data, High Risk Countries, mismatch of I.P address Country with Billing Country, mismatch of Bin country with Billing address, Telephone Number Validity Check for eg- (9999999999), etc.
2. Blacklist Control – Any transaction detected/reported as Fraud by (LEA/Banks), in such cases - (User Email Id, Contact Number, IMEI/MAC Device, Card Prefix & Suffix) will be entered in blacklist field.
On matching any of the above fields, such transactions will be highlighted on real time a HighRisk
Alert on system with a notification to Merchant to prevent transactions from being processed