High Value Payment Monitoring is a critical factor for ensuring efficiency in any business that deals with a significant amount. A high-value transaction can be difficult to monitor, particularly if there is no clarity about what constitutes one and how to monitor it.
What is High-Value payment and transactions?
To understand how to monitor high-value transactions, it is first necessary to define what a high-value transaction is. The term “high-value transaction” refers to any transaction with an amount significantly higher than average. There is no fixed amount; so, a transaction valued at $5,000 and above will be considered high value by some companies, while one valued at $50,000 and above will be considered high value by other companies.
Determining a High-Value Transaction?
How do you define a high-value transaction? Well, one way is by using the median of all your transactions as a base. Any number larger than it is a high value. Another method is by calculating the 75th percentile of all your transactions to indicate high-value payments.
Below we list the different kinds of high-value transactions:
- High-risk transactions are the transactions with a high risk of fraud
- Large cash transactions are those where the cash payments are higher
- Transactions with significant financial impact are those that considerably affect your overall finance. A high-value payment made into a suspicious activity-blocked account, for instance, could result in the payment being blocked.
It is evident that all these situations are accompanied by a risk factor. High value payment monitoring not only helps in improving efficiency but also reduces the associated risk. In some cases, you will be able to avoid an unfavourable situation altogether.
So, what is the solution to avoid risks during high value transactions? Can you monitor high-value transactions? Below are given two of the most common methods to monitor high value payments:
- Requesting the service provider to monitor the activities for you
Or
- Do it yourself through your bank’s net banking facility or mobile banking app. You can set limits and notification alerts
It is important to monitor high-value transactions in order to eliminate or minimise fraud risk, whether you are receiving or making payments. In order to maintain your finances and ensure smooth operations, it is crucial to monitor high-value payments. The current technology available allows for real-time tracking of payments and other monitoring options, enabling fraud to be avoided or rectified if it occurs.
What are the benefits that high-value payment monitoring brings to the table?
- Ensures customer trust: Your business is built on customer trust. Once the customers know that your transactions are clean and are always monitored and protected, it is easier to retain them.
- Protect your business from fraud: There are hackers and fraudsters who make note of the weak points to conduct fraudulent transactions. High value payment monitoring takes care of this.
- Spot inconsistencies in your financial records: This is one life saver for companies that deal with multiple transactions in a day.
Other benefits are:
- Notify you when suspicious transactions occur
- Ensures payments are made to the exact accounts
- The cash flow is improved, preventing financial losses.
Today, automated suites of tools that are specifically designed for high value payment monitoring are available, making it easy to monitor high-value payments. As businesses strive to provide seamless payments to customers and stakeholder groups, they should invest in high-value payment software. Additionally, it ensures protection from financial loss and fraud by streamlining all transactions.
