Individual risk logic for Maxpay merchants

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Individual risk logic for Maxpay merchants


After years of utilizing different risk management solutions and not getting all necessary features in all-in-one place, the Maxpay risk management team decided to collaborate with product and development teams and create an in-house risk assessment platform for Maxpay purposes. 

Thus, Covery was created in 2016 and launched on March 14, 2016, considered by developers as a risk assessment platform only for internal purposes of Maxpay.

Later on, Maxpay revealed a positive impact of Covery as an anti-fraud system and decided to expand Covery as a unique product with different services.
In January 2018, Maxpay announced that Covery is launching a collaborative reputation network called Trustchain.
As of today, Trustchain stores 300 million reputation records and stays one of the most effective Covery innovations together with Device Fingerprinting, KYC&AML procedure automation.


Usually, anti-fraud tools and risk assessment solutions manage only specific issues. 
The main idea behind Covery was to develop a multi-tasking tool that is able to perform all risk management and fraud prevention actions necessary for the processing of high- and low-risk companies.

Today Covery solves all issues of risk mitigation in the payment processing industry: chargeback protection, prevention of card and card-not-present fraud, friendly fraud, merchant fraud, transaction monitoring, etc.

With Covery Maxpay risk team can set up a risk logic for each Maxpay merchant individually. 
At the same time, there is a capability of merchant, industry, and global rule scenarios creation that provides Maxpay with an opportunity to have the hierarchy of scenarios that covers all the risks.
Scenario hierarchy helps Maxpay to onboard, set up merchant processing almost immediately, and adjust scenarios according to the merchant industry even without any initial processing data. 


While understanding the amount of merchant traffic, Covery enables the Maxpay risk team to apply specific velocity limits to keep the chargeback ratio allowable.
Maxpay applies capacity limits that consider the predictable percentage of chargeback amount from the total amount of the transactions.
The merchant is limited in the amount of the operations and thus protected from unlimited chargebacks.
These limits can be set up by processing countries or bank issuer, for instance.

Covery also provides chargeback management products owing to the integration with VMPI and Ethoca services.


Enabled by Covery, Maxpay can spot the merchant fraud.
It became possible with Covery’s ability to check not only transactions and payouts but also refunds.
While screening refunds, Covery can verify the transaction is refunded to the same card from which it previously came, and the merchant is not trying to withdraw money while refunding the majority of transactions.


All Maxpay merchants obtained a new, enhanced reputation after the risk logic set up by Covery.
It became an excellent opportunity for some of Maxpay customers to lower the bank rolling reserve and risk mitigation restrictions.

In some instances, banks directly contacted Maxpay to ask for limits and rules set up on Maxpay’s side, because the reality is that Covery sets up limits faster than the bank system.

Covery calculates the refunds amount and the general amount of transactions and sends alerts of refund declines if the number of refunds and payouts increases.


For Maxpay Covery checks transactions, payouts, and refunds.
The truth is, not all the solutions on the market can process and track all types of payment methods.
Covery is more flexible. 
The platform can check all payment methods: e-wallet card transactions, SEPA, SWIFT, and other bank and non-bank transfers.
Maxpay also does not need to gather any additional processing data, because Covery is already integrated with card BIN, SEPA, IBAN, SWIFT code lists, and phone number databases. 

Whatever complex the risk logic is, Covery makes a decision for less than 1 second.


Maxpay customers do not notice any interference from Covery’s side, all actions and decision-making are automatized.
However, Covery gives the ability to perform manual review and post-review of the decision.
The post-review is performed by a big team of risk analysts with the help of a queue tool.
The team is supervised by a manager who reviews the quality of the agent’s work in agent performance reports that are also automatized by Covery.


With Covery’s tools help, all high-risk Maxpay merchants can make their chargeback ratio twice lower than they had with other processing companies before.
For instance, one of the Maxpay merchants came with a 3,5% chargeback ratio having no chances to work with any payment solutions. 

After just three months, Maxpay and Covery lowered the merchant’s chargeback ratio to 1,75%.


The key to PSPs’ niche is to maintain healthy merchant accounts for online sellers. 
That’s why Maxpay, in 2015, invested in the creation of Covery that today gives all the necessary features to help high- and low-risk merchants to have a chance for fraud- and chargeback-free environment.