3 PAYMENT METHOD SCORECARD: CASH
3.1 Cash Security Metrics
Brand Risk Being the first established tender type out of the group, cash has been accepted as a payment method for hundreds of years and provides no brand risk for merchants to accept. Fraud Risk (Merchant) Merchants can face challenges making sure cash is valid and neither counterfeit nor in too poor a condition to accept. According to the Federal Reserve, the stock of counterfeit is at most about $30 million or about 1 in 400,000 notes and is likely $15 million or about 1 in 80,000 notes. This suggests cash fraud is relatively small compared to other tender methods. 792 Fraud Risk (Consumer) If a consumer experiences cash payment fraud, it is not likely they will be returned the cash they have lost.
Weight Score
Approvals Considerations Error Resolution Framework System Liability Rules (i.e. Network Rules)
15% 5.0
15% 1.0
20% 1.0
Refund Mechanisms
10% 5.0 10% 5.0 15% 4.0 15% 1.0
Brand Risk
Fraud Risk (Merchant) Fraud Risk (Consumer)
TOTAL SCORE
2.9
Approvals Consideration False declines within cash transactions are not very common. While counterfeit notes do exist, it is not very likely that a transaction would be declined because the note was suspected to be counterfeit. Error Resolution Framework There is no error resolution framework established for cash transactions. If cash is stolen from a user, it most likely is considered lost with no reconciliation. Liability Rules (i.e., Network Rules) There are no set liability rules for cash transactions. Refund Mechanisms Cash transactions can be refunded if the merchant has the available change in the cash register. However, unlike card payments there is no independent arbitrator of refund-related disputes between merchants and consumers, aside from the court system.
161
Powered by FlippingBook