Operational Points: Understanding Risk Management with Peach

What are Operational Points?

Operational points are the building blocks of Peach's advanced risk management system. They represent individual risk checks that we can tailor to your specific business needs. These checks help protect your transactions from fraud and unauthorized activity.

Types of Risk Checks (Examples):

• Velocity Checks: These monitor the frequency and speed of transactions, flagging unusual patterns that might indicate fraud.

• Plausibility Checks: These assess the likelihood of a transaction being legitimate based on various factors like transaction amounts, customer history, and purchase behavior.

• Risk Scoring: Each transaction receives a risk score. A score of 0 indicates a low-risk transaction, while a score above 0 and up to -5100 indicates an elevated risk of fraud, leading to transaction failure.

For a full list of all risk checks and their OPs please see the Risk Checklist for Peach Payments document.

How Operational Points Work:

Each risk check is associated with a specific number of operational points. The more complex or comprehensive the risk check, the more operational points it will have. This allows us to create a flexible pricing model where the cost of your risk management solution is directly related to the level of protection you choose.

Each OP costs R0.02 (2 cents). Note: If a risk check is implemented, this will be run on each transaction, whether the transaction is successful or unsuccessful.

Example:

If a merchant requests to block a card and it costs an additional 6 OPs (R0.02 * 6 = R0.12), the risk check will look at every single transaction and ask whether that transaction is from the blocked card or not. If it's from the blocked card, then decline; if not, then process.

Benefits of Peach's Operational Point System:

• Customization: You have the power to select the specific risk checks that are most relevant to your business.

• Cost-Effectiveness: You only pay for the level of risk protection you need.

• Scalability: As your business grows or your risk profile changes, you can easily adjust your risk management strategy by adding or removing operational points.

Let's Talk About Your Risk Management Strategy

Our team is ready to discuss your unique risk profile and help you design a customized risk management solution using operational points. Contact us today to learn more!