For any business that trades in a significant amount, one of the critical factors to ensure efficiency is monitoring its high-value payments. It is easier said than done, especially if there is no clarity as to what constitutes a high-value transaction and who or how you can monitor it. However, the good news is there are ways to solve these problems.
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What does a High-Value Transaction mean?
Before discussing ways to monitor high-value transactions, we must understand what constitutes a high-value transaction. In simple terms, a high-value transaction is any transaction with a value significantly higher than average. It is not a fixed value or amount as different businesses have different averages. So, while some companies might find a transaction of $5,000 and above as high value, few others might find a transaction of $50,000 and above as high value.
How to Determine High-Value Transaction?
You can define a high-value transaction in several ways. One method uses the median of all your transactions as a base and considers any number larger than it as a high value. Another method uses the 75th percentile of all your transactions to indicate high-value payments.
Different kinds of high-value transactions include the following:
- High-risk transactions—these 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—these transactions substantially affect your overall finance. For instance, if you made a high-value payment into an account that was subsequently blocked due to suspicious activity.
As you can see, all these scenarios carry a tremendous amount of risk. Monitoring them can not only help in improving efficiency but also reduce the associated risk. In some cases, you will be able to avoid an unfavourable situation altogether.
It is possible to monitor high-value transactions. Two of the most common means are:
- Asking the service provider to monitor the activities for you
- Do it yourself through your bank’s internet and mobile banking apps to set limits and alerts
Monitoring high-value transactions eliminate or minimise the risk of fraud, whether receiving payments or making payments. High-value payment monitoring is crucial for maintaining your finances and ensuring everything runs smoothly. Currently, tracking real-time payments and other such options are available to monitor every transaction, thereby allowing you to prevent fraud or rectify the situation if you encounter any problems.
High-value payment monitoring also
- Protect your business from fraud
- Spot inconsistencies in your financial records
- Notify you when suspicious transactions occur
- Make sure payments are made to the correct accounts
- Improve cash flow and prevent financial losses.
Nowadays, high-value payment monitoring is easy, thanks to the availability of a range of automated suites of tools designed specifically for this purpose. Most businesses are investing in high-value payment software as they deliver a seamless payment experience for customers and stakeholders. Furthermore, it ensures protection from fraud and financial losses by streamlining all the transactions. Above all, with the right software, everything will be available at one place.
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