Velocity rules
Velocity rules are a critical component of fraud prevention, designed to detect unusual patterns in transaction frequency and value. Cardflo enables merchants to set precise limits on how many transactions, or how much value, can be processed by a single card, customer, or IP address within a defined period. This helps identify and block high-volume, short-burst fraud attempts.
What you get.
- Set limits on transaction count per card, customer, or IP within a timeframe.
- Define thresholds for total transaction value per entity over specified periods.
- Monitor velocity across multiple merchant accounts or business units.
- Trigger alerts or automatic rejections when velocity thresholds are breached.
- Customise velocity windows (e.g., hourly, daily, weekly).
- Differentiate velocity rules based on payment method or risk score.
Common questions.
What is a velocity rule in payment processing?
A velocity rule monitors the frequency or value of transactions from a specific entity, such as a card, customer, or IP address, over a set period. It's used to detect rapid, unusual activity that may indicate fraudulent behaviour, like card testing or account takeover attempts.
How do velocity rules prevent fraud?
Velocity rules prevent fraud by identifying patterns that deviate from normal purchasing behaviour. For example, multiple high-value transactions from a new card within minutes can trigger a rule, leading to the transaction being flagged or declined, thus blocking potential fraud.
Can I adjust velocity rules dynamically?
Yes, Cardflo allows merchants to adjust velocity rules dynamically. This flexibility is important for adapting to changing business conditions, new product launches, or evolving fraud tactics, ensuring that your fraud prevention remains effective and relevant.
Related features.
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