3 PAYMENT METHOD SCORECARD:
DIGITAL WALLET (STAGED/STORED-VALUE)
3.3 Digital Wallet Digital Wallet (Staged/Stored- Value) Security
Liability Rules (i.e., Network Rules) Like the error resolution framework, the storage of multiple payment methods adds complexity to the liability rules for staged/stored-value digital wallets. Refund Mechanisms The ease of receiving/issuing refunds for staged/ stored-value digital wallets is dependent on if the funds were taken from the stored value on the digital wallet or one of the underlying payment methods. Brand Risk By accepting one staged/stored-value digital wallet a merchant is accepting various funding methods which can increase brand risk. Fraud Risk (Merchant) It is important to note not all staged/stored-value digital wallets are created equal. The fraud risk for merchants is dependent on how the wallet is accessed. Many digital wallets are hosted on apps where a user must have possession of the phone, biometric access to the device, and sometimes
Metrics
Weight Score
Approvals Considerations Error Resolution Framework System Liability Rules (i.e. Network Rules)
15% 4.0
15% 3.5
20% 3.0
Refund Mechanisms
10% 3.5 10% 3.0 15% 3.5 15% 3.0
Brand Risk
Fraud Risk (Merchant) Fraud Risk (Consumer)
account credential knowledge. Fraud Risk (Consumer)
TOTAL SCORE
3.4
The likelihood of consumers receiving their money back in case of fraudulent activity on a staged/ stored-value digital wallet is dependent on the wallet.
Approvals Consideration Staged/stored-value digital wallets are not as likely to receive false declines. Staged/stored-value digital wallets usually have a backup payment method available making non-sufficient funds (NSF) declines not common. Error Resolution Framework Typically, there is a process in place to resolve errors and mediate disputes. However, the storage of multiple payment methods in the digital wallets adds complexity for the consumer knowing who to contact.
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