3 PAYMENT METHOD SCORECARD: PAY BY BANK (REAL-TIME PAYMENTS)
3.4 Pay by Bank Real-Time Payments Security
Refund Mechanisms Refund mechanisms vary by real-time payment systems. Brazil’s PIX has created its Special Devolution Mechanism to standardize the refunding process in case of any errors. While creating a process for users to follow, the user is responsible for contacting the institution where the transaction took place. 837 Brand Risk Brand risk for accepting real-time payments is dependent on the credibility of the RTP. Fraud Risk (Merchant) Real-time payments are not as prone to fraud risk regarding merchants directly; however, fraudsters could use merchants brand in their scams which could influence consumers view of them. Fraud Risk (Consumer) In a situation where a consumer is defrauded via a real-time payment, getting money back is possible, but not easy.
Metrics
Weight Score
Approvals Considerations Error Resolution Framework System Liability Rules (i.e. Network Rules)
15% 5.0
15% 3.0
20% 3.5
Refund Mechanisms
10% 3.0 10% 3.0 15% 3.0 15% 3.0
Brand Risk
Fraud Risk (Merchant) Fraud Risk (Consumer)
TOTAL SCORE
3.4
Approvals Consideration False declines are not common in bank transfer transactions. This is mostly because real-time payments are considered “push” transactions where the consumer is initiating the transaction and giving approval to the bank to send funds to the merchant. Error Resolution Framework Error resolution varies by real-time payment systems. Brazil’s Pix has created its Special Devolution Mechanism to standardize the refunding process in case of any errors. 835 Liability Rules (i.e., Network Rules) Liability rules depend on the real-time payment platform. For example, Pix in Brazil is created by their central bank and notes financial and payment institutions are accountable for fraud in their ecosystem. 836
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