Withhold Transaction Process
An acquiring bank is potentially liable for losses caused by merchant fraud, including merchants engaged in deceptive or misleading practices while the risk may occur at the payment facilitator level, when products, services, or systems associated with the processing are not properly reviewed for compliance, or when the operations are not consistent with law, ethical standards, or the card scheme’s policies and procedures.
Under Risk Management division, senangPay practices to review and validate every merchant’s transaction of sales activity, transaction patterns and authentication of transaction in which :
A transaction may be hold due to the following circumstances upon transaction monitoring:
1. Non 3D authenticated transaction
2. Massive failed transactions occurred on merchants account
3. Disputes / complaints received from cardholder
4. Mismatch on business activity against documents presented during registration
5. Excessive charge-backs due to merchant business practices or procedures
6. Excessive deposits for transactions unauthorized by cardholders
7. Credit or debit card fraud conviction
8. Merchant failed to provide complete supporting documents as requested by Risk & Compliance
9. Merchant failed to be reached out via any form of communication
10. Any occurrences which is deemed to be suspicious under senangPay review that requires further explanation
senangPay will hold any transaction under the listed circumstances with a verification email will be send to merchant requesting for supporting document before the settlement is processed. Should merchant failed to provide any of the requested documents and/or additional explanation, the withhold transaction will be remain for 120 days following chargeback filing window.
senangPay will also send a verification email to the bank as a process of authenticating a non 3D or suspicious transaction and upon receiving the authorization confirmation, the withhold transaction will be released for settlement.