Fraud Terminology

Automated Clearing House

US based electronic network for bank transactions like direct deposits and bill payments

Address Verification System

Tool used to verify billing address matches cardholder records

Business Risk Assessment and Mitigation

Mastercard program to prevent illegal or high risk merchant activity with penalties

Bust Out

Fraud scheme where credit is built then maxed out with no repayment

Credit Bureau Report

Report from Equifax Experian and TransUnion showing credit history

Chargeback

Bank reversal of a disputed transaction

Divert

Paysafe holds all merchant funds temporarily in its own account

Doing Business As

Merchant operating name

Electronic Benefits

Government assistance card system for approved purchases

Feedzai

System that generates merchant risk alerts

FiServ

Payment processor connecting Paysafe and banks

Funds on Hold

Internal term for reserve or divert status

G2

External partner that handles cases triggered by BRAM which is Business Risk Assessment and Mitigation and VIRP which is Visa Integrity Risk Program

Global Risk Investigation Program

Mastercard program monitoring high risk merchants

Identity Theft

Unauthorized use of personal information for fraud

Interactive Voice Response

Automated phone system that routes callers

Lexis Nexis

Tool for researching merchant and owner information

Mail Order Telephone Order

Transactions completed without physical card present

MATCH List

Mastercard blacklist of terminated merchants

Merchant

Business processing transactions

Merchant Category Code

Code that identifies business type

Merchant ID

Unique number assigned to a merchant

Next Day Funding

Process to release funds quickly to merchants

OFAC

US agency enforcing economic sanctions

Point of Sale

Location or system where payment occurs

Quality Assurance

Internal review of investigator work

Real Time Fraud

Fraud happening instantly requiring immediate detection

Reserve

Funds held to cover potential chargebacks

Underwriting

Department reviewing merchant applications

Unusual Activity Report

Report required for confirmed activity over 5000 dollars

Visa Acquirer Monitoring Program

Visa program monitoring fraud and dispute ratios

Visa Integrity Risk Program

Visa program focused on high risk merchant compliance