Risk management transaction velocity limitations

Most people set a recovery rate on 'spending limits' that is based on a 30 day cycle instead of a daily cycle. This video demonstrates why a daily cycle is superior for profits and customer satisfaction.

A daily cycle reduces manual reviews and removes 'silly limits' such as not trusting a customer to spent $2.00 today after they just spent $200 yesterday. (Imagine how upset a customer would be in that situation if your system rejected such a small order, or flagged it as risky for a manual review.)

How to do it: The daily rate is a function of X and Y. If You allow $300 every 30 days, then the daily rate is $10 (recovered to one's spending limit, up to the maximum ceiling of $300)

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Howto & Style

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