The floor limit at the POS device level that applies to respective merchant categories, for example, butcher shops, bottle stores etc. After reviewing the overall fraud data, it was revealed that lost and stolen credit cards were mainly being used a bottle stores and fast food restaurants. These merchants have a floor limit of R500 transactions below this limit are authorized offline as the merchant require fast throughput for their customers.
You are responsible for
* industry fraud
* risk management
* countering tis fraud trend
Assess the settlement and liquidity risk. The data revealed losses of R10million a month.
Make a recommendation to counter this risk issue.