Challenges of Managing Payments Risk

Payments risk occurs each time value exchanges from one party to another -- even with cash.  Risks during a payment transaction can include insufficient funds, bankruptcy and inability to pay, check kiting, physical theft, and rising counterfeit and phishing fraud risk.  Collecting payments more quickly and optimizing the clearing and settlement channel based on a combination of risk and other factors provides a strong foundation for effective payment risk mitigation.

EDC is well qualified to help payment industry participants develop and implement strategies to mitigate their payment risk.  Through our experience of consulting with issuers on fraud and credit risk issues and through EDC's Payment Card Risk Manager Roundtables, we are familiar with the best practices that issuers use to control their risk exposures.  We also work closely with third-party vendors which have tools that can be helpful in implementing payment risk mitigation strategies.