Payment fraud in e-commerce is growing threat which brings with it not only the risk of financial loss, but also the peril of a negative reputation in the e-commerce industry, which may even lead to the termination of business.

It is CQR’s aim to protect our Partners from these risks, which is why we leverage our seven years of experience in the area of online fraud prevention by constantly developing tools and solutions to prevent scenarios as described above from occurring.

General supervision

In accordance to regulatory requirements, CQR will on a regular basis review the transaction and chargeback status of its merchants and report back to them the results of these investigations.

If necessary or requested, assistance to the Partner can be provided by one of the highly skilled team members of the CQR Risk Department.

Incident reporting

As part of CQR’s commitment to support our Partners in the battle against payment fraud, we are continuously implementing new solutions for monitoring payment activity, and in cooperation with the Partner we define and deliver reports concerning irregular payment activity.

These incidents reports will help the Partner to control the activity of customers and transactions, and minimise financial loss due to fraud.

Payment Scoring Platform

In addition to the supervisory services described above, CQR merchants may be interested in benefiting from CQR’s Payment Scoring Platform, a rule-based scoring system featuring multiple customizable parameters. Each payment can be subjected to a large set of individual checks, the selection and configuration of which is jointly agreed upon by CQR and the Partner.

Depending on the level of customer and transaction data exchanged, different quality checks can be applied:

• Basic checks involve analysis based on the individual transaction, building a solid ground for further evaluation. Examples of these are limit checks; limits can be scored based on the amount requested per individual transaction, over a specific time period, and with regards to payment method used.
• Velocity checks are performed on a per-transaction basis and can be used to flag unusual activity, e.g. an increase in transaction volume fitting a defined risk profile. Examples of these are Origin Checks; the IP address of a request can be matched with the address information provided by the User and/or the origin of their card issuing bank.
• Customer checks take the full history of the relationship between a Partner and their User into consideration in order to evaluate the risk of a transaction. These checks can also be used to protect long-term, trusted customers from any negative impacts of the static Basic checks – albeit with the prerequisite of a great deal of information exchange.

Risk Assessment Workshop

The products and risk services offered can be tailored to the individual needs of the Partner, depending on their risk exposure.

In order to find the most efficient solution for the Partner, a Risk Assessment Workshop will be held with representatives from both the Partner’s and CQR’s Risk departments. CQR and the Partner will together determine the Partner’s risk exposure and define which of CQR’s Risk Products is most suitable.

The Risk Assessment Workshop is part of the Partner onboarding process as defined in applicable financial as well as Anti Money Laundry regulations.

Anti Money Laundry

The abuse of the financial system by criminal organisations for the purposes of money laundry or terror financing is a serious threat to the business of both CQR and our Partners.

Because of this serious menace, member states of the European Union have released regulations based on the 3rd Money Laundry Directive of the EU. These regulations include measures and procedures to be put in place by payment providers to assist the financial industry in the fight against crime.

CQR is taking these regulations seriously, and will always implement industry best practices in order to ensure full regulatory compliance, and will expect Partners to do so as well.