Interchange fee and Risk policy: Difference between pages

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imported>Doug Williamson
(Remove surplus link.)
 
imported>Doug Williamson
m (Spacing and category added 20/8/13)
 
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''Payments - cards - charges.''
''Risk management''.
Predetermined actions the entity will take, or have in reserve, to deal with the various situations that might arise. 


Interchange fees or charges relate to credit cards, debit cards, and other cards.
Risk policy should cover commercial as well as treasury approaches to exposure management.  


Interchange charges are levied by the merchant acquiring company (normally a bank or other financial institution that "buys” the transactions from the retailer at a discount).  
The policy should identify and reflect the risk appetite and risk tolerances of the organisation, making explicit that a risk management system has been designed to provide reasonable assurance of achieving business objectives.  


They include transaction fees for debit cards and turnover fees for credit cards charged by the card acquirer that processes card payments on behalf of the retailer.
It should assign accountability for managing risks and reporting results on effectiveness of the system to executive management.
 
Interchange charges are often negotiable and depend on the volumes of transactions, the average transaction size, the method of processing and the credit quality of the transactions.  




== See also ==
== See also ==
* [[Acquirer]]
* [[Exposure]]
* [[Credit]]
* [[Risk appetite]]
* [[Credit card]]
* [[Risk control]]
* [[Debit card]]
* [[Risk tolerance]]
* [[Emerging Payments Association]]
* [[Pay]]
* [[Payment]]
* [[Payments and payment systems]]
* [[PSOR]]
* [[Receipt]]
* [[Remittance]]


[[Category:Accounting,_tax_and_regulation]]
[[Category:Financial_risk_management]]
[[Category:The_business_context]]
[[Category:Identify_and_assess_risks]]
[[Category:Manage_risks]]
[[Category:Cash_management]]
[[Category:Financial_products_and_markets]]
[[Category:Liquidity_management]]

Revision as of 14:08, 20 August 2013

Risk management.

Predetermined actions the entity will take, or have in reserve, to deal with the various situations that might arise.

Risk policy should cover commercial as well as treasury approaches to exposure management.

The policy should identify and reflect the risk appetite and risk tolerances of the organisation, making explicit that a risk management system has been designed to provide reasonable assurance of achieving business objectives.

It should assign accountability for managing risks and reporting results on effectiveness of the system to executive management.


See also