Risk Management is a critical aspect of any payment processing platform, especially in the context of online Marketplaces and Non-Marketplaces.
There are two primary reasons for implementing robust risk management strategies:
- Fraud Prevention: Secure customer PII (Personally Identifiable Information) and payment data to prevent unauthorized transactions and protect against fraud.
- Regulatory Compliance: Adhere to legal and regulatory requirements, such as KYC (Know Your Customer) and AML (Anti-Money Laundering) regulations, to ensure the integrity of the payment ecosystem.
The question of who bears the risk in payment transactions is pivotal, whether it should be handled by the eCommerce platform (the Marketplace or Non-Marketplace) or by Ryft as the payment processor.
Given the constant evolution of fraud tactics and regulatory landscapes, it is essential for businesses to stay vigilant and adapt their risk management strategies accordingly. Therefore it is highly recommended that this function be managed by a specialist payment gateway or a Payment-as-a-Service (PaaS) provider.
By outsourcing risk management, greater focus can be placed on core business activities. This ensures that all legal requirements are satisfied and that customer payments are secured. Furthermore, the retailer's reputation is protected, and the risk of substantial fines resulting from non-compliance is reduced.
Risk Management Overview
An overview of risk management, its importance, and how it applies to eCommerce platforms like Ryft.
Anti Money Laundering
Anti-Money Laundering (AML) regulations, including Know Your Customer (KYC) and Know Your Business (KYB), are essential for preventing fraud and financial crime. Ryft is legally required to collect KYC and KYB documentation from all account holders.