An online merchant faces at least two types of risks: a financial risk, e.g., the risk that a customer may not pay for goods and services purchased, and a platform risk, e.g., the risk that a customer may abuse the platform or violate the terms of service. This disclosure describes techniques that integrate models of financial and platform risk to generate a consolidated risk profile for a customer. The risk assessment model is proactively applied at the time of customer sign-up to identify high-risk customers. Payment option restrictions are applied to customers deemed to be high risk, e.g., restrictions on direct debit payments, threshold payments (up-front credit for purchases), the use of credit cards, etc. The techniques enable smooth sign-up and ease of use for low-risk customers and mitigate risk created by high-risk customers.
Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 License.
Goyal, Vishu; Zhang, Ming; Sukla, Vikas; Levine, Geoffrey; Shi, Lin; O'Mathuna, Padraig; Harangus, Andrei; Keeling, Gargi M; and Kuchinski, Monica, "Risk-appropriate Restrictions on Payment Options", Technical Disclosure Commons, (June 25, 2020)