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Payment Risk 101

4.4 Filled star Filled star Filled star Filled star Empty star
Based on 1,076 ratings
see reviews
Sean Li

Are you ready to start your path to work in the payment industry and fight against fraudsters.

I have worked in the payment risk industry for many years with experience from PayPal and Google. I am a CFE and I am part of the MRC education committee. I am ready to share with you all my experience and knowledge.

Payment and Payment Fraud requires some domain knowledge. This comprehensive course is the first one and the only one on Udemy for payment risk 101. This course has over 5000 reviews with 4.0+ feedback.

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Are you ready to start your path to work in the payment industry and fight against fraudsters.

I have worked in the payment risk industry for many years with experience from PayPal and Google. I am a CFE and I am part of the MRC education committee. I am ready to share with you all my experience and knowledge.

Payment and Payment Fraud requires some domain knowledge. This comprehensive course is the first one and the only one on Udemy for payment risk 101. This course has over 5000 reviews with 4.0+ feedback.

With the development of Blockchain and high payment fraud pressure, more and more companies especially tech companies like FB and Google have invested a lot into payment and payment risk management. The payment risk/fraud-related job has increased 3 times in the last 2 years.

In this class, we cover all the basic knowledge you need about payment and payment risk no matter you just prepare for an interview or want to know about it or want to refresh your memory. This course content is mainly for the US market.

Here are just a few topics we will be learning:

  • Pull/Push Payment

  • Open-loop/closed-loop payment system

  • The card system

  • Card Authorization, Clearing & Settlement

  • Card Present Transactions vs Card not present transaction

  • Card Interchange Fee

  • Chargebacks and Refunds

  • The ACH system

  • ACH Interchange Fee

  • 3DS2.0

  • Confusion Matrix

  • Risk Modeling

  • Hypothesis

  • Sampling Method

  • Confidence Interval

  • Family Fraud

  • Account Takeover Risk

  • Stolen Financial Risk

  • Non-Sufficient Funds Risk

  • Merchant Risk

  • Authentication

  • How the fraudsters do to avoid risk checks

  • Case Study

  • Risk Strategies and Rules

Enroll in the best payment risk course and enjoy your time-fighting fraudsters today.

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What's inside

Syllabus

Introduction

A warm welcome and a brief overview

Understand the payment basics like pull/push payments, open-loop/closed-loop payment systems
Read more

Present the payment basics, we are going to learn about open-loop systems, closed-loop systems, push payments, pull payments and payment methods

Introduce the card system, we will take about:

  • Key players: issuer, card network, acquirer

  • How card transaction process: authorization and Clearing & Settlement

  • Card Present Transaction vs Card Not Present Transaction

  • Credit/Debit Card Interchange Fee

  • Card Risk

Introduce the chargeback and refund, we will talk about:

  • What's chargeback/refund

  • Why care about chargeback

  • How to reduce chargeback

Introduce the ACH system, we will take about:

  • Key players: ODFI, Operator, RDFI

  • ACH Types: ACH Credit Transaction vs ACH Debit Transaction

  • ACH Interchange Fee

  • ACH Risk

We will talk about at the risks associated with payment:

  • ATO/SF/NSF/Merchant Risk

Payment Basics

talk about fraud programs like VDMP, VFMP and EFM.

talk about 3DS2.0, PSD2 and SAC

Quiz for payment regulation and fraud program

talk about stats 101 for payments like hypothesis and confidence interval

talk about confusion matrix

talk about popular payment risk models like decision tree and random forest

Quiz for the risk statistics

Introduce the basic ATO concepts, We will talk about:

  • What does ATO mean

  • How could it happen

  • Why ATO prevention is important

Introduce how to identify ATO attacks, We will talk about:

  • Typical ATO examples

  • What variables we can use to catch ATO attacks

  • How could fraudsters avoid our risk checks

Introduce what risk actions we have, We will talk about:

  • Decline

  • Authentication

    • Meaning

    • Types

    • Pros and Cons

  • Hold

  • Manual Review

Introduce ATO real world examples, We will talk about:

  • Some real world ATO examples

  • How to design risk rules

Introduce the basic SF & NSF concepts, We will talk about:

  • What does SF & NSF mean

  • How could SF or NSF happen

  • Why SF & NSF prevention is important

Introduce how to identify SF & NSF attacks, We will talk about:

  • Typical SF & NSF examples

  • What variables we can use to catch SF & NSF attacks

  • How could fraudsters avoid our risk checks

  • CVV and AVS

Introduce what risk actions we have, We will talk about:

  • Decline

  • Authentication

    • CVV

    • AVS

    • Random Deposit

    • Yodlee

  • Hold

  • Manual Review

Introduce SF real-world examples, We will talk about:

  • Some real-world SF and NSF examples

  • How to design SF and NSF risk rules

talk about family fraud basic knowledge

talk about How to identify FF

Talk about how to better deal with FF

Quiz for FF

Introduce the basic Merchant Risk concepts, We will talk about:

  • What does Merchant Risk mean

    • Fraud

      • IVR

      • SNAD

    • Credit

Introduce how to identify Merchant Risk attacks, We will talk about:

  • Typical Merchant Risk examples

  • What variables we can use to catch Merchant Risk attacks

    • Merchant Segment

    • Delivery Days

  • How could fraudsters avoid our risk checks

Introduce what risk actions we have, We will talk about:

  • Decline

  • Hold

  • Manual Review

  • Reserve

Introduce Merchant Risk real world examples, We will talk about:

  • Some real world Merchant Risk examples

  • How to design risk rules

Traffic lights

Read about what's good
what should give you pause
and possible dealbreakers
Covers card authorization, clearing, and settlement, which are essential processes for understanding payment networks
Explores the ACH system, including key players, transaction types, and associated risks, which is crucial for those in the payments industry
Discusses regulations like Regulation E and Regulation Z, which are important for compliance in the payments industry
Examines statistical concepts like hypothesis testing and confidence intervals, which are foundational for risk modeling
Includes quizzes on payment regulations, fraud programs, and risk statistics, which reinforces learning and knowledge retention
Focuses primarily on the US market, which may limit its applicability for learners in other regions

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Reviews summary

Comprehensive introduction to payment risk

According to learners who would likely take this course, it provides a comprehensive introduction to the world of payment risk. It covers foundational concepts like card and ACH systems, key regulations, and various fraud types such as ATO and Merchant risk. Many would find the coverage of risk strategies and rules, along with real-world examples, particularly valuable for practical application and job preparation. While the course offers an overview of statistical modeling relevant to risk, this section may be perceived as introductory. Learners should note that the content is primarily focused on the US market.
Introduces relevant statistical concepts.
"The explanation of the confusion matrix was useful for fraud detection metrics."
"The linear/logistic regression sections felt a bit basic if you have a stats background."
"I wish there was more depth on applying modeling specifically to payment risk."
Serves as a strong introductory foundation.
"This course is perfect for someone new to payment risk."
"It covers a broad range of topics, giving a solid base."
"For advanced practitioners, it might be too basic, but it's excellent for beginners."
Helpful overview of key regulations.
"Understanding 3DS2.0 and PSD2 in the context of risk is valuable."
"The overview of US regulations like Reg E vs Reg Z was informative."
"Knowing about fraud programs adds important context."
Covers key payment system concepts well.
"I now understand the difference between pull/push payments."
"The sections on card authorization and settlement were clear."
"Learning about chargebacks and ACH was very helpful for context."
Connects concepts to real-world scenarios.
"The real-world examples and case studies were insightful."
"I feel better equipped to design risk rules after this course."
"Learning about risk actions like authentication and manual review is practical."
Provides a solid introduction to various risks.
"The modules on ATO, SF, and NSF risks were particularly relevant."
"I appreciated the examples for identifying different types of merchant risk."
"The course helps you understand the common ways fraudsters operate."
Content is primarily tailored to the US.
"Be aware that the regulations and systems discussed are mainly US-centric."
"As a non-US learner, some sections were less directly applicable to my market."

Activities

Be better prepared before your course. Deepen your understanding during and after it. Supplement your coursework and achieve mastery of the topics covered in Payment Risk 101 with these activities:
Review Payment Processing Basics
Solidify your understanding of fundamental payment concepts before diving into risk management.
Browse courses on Payment Systems
Show steps
  • Review definitions of pull and push payments.
  • Compare open-loop and closed-loop systems.
  • Summarize the key differences between payment methods.
Read 'Fraud Prevention for Dummies'
Gain a broader understanding of fraud prevention principles applicable to the payment industry.
View Putting Knowledge to Work on Amazon
Show steps
  • Read the sections on common fraud schemes.
  • Identify prevention techniques applicable to payment risk.
  • Summarize key takeaways from each chapter.
Analyze Chargeback Scenarios
Practice identifying the root causes of chargebacks and developing strategies to mitigate them.
Show steps
  • Obtain sample chargeback data or scenarios.
  • Identify the reasons for each chargeback.
  • Propose solutions to prevent similar chargebacks.
Four other activities
Expand to see all activities and additional details
Show all seven activities
Create a Presentation on Account Takeover
Deepen your understanding of Account Takeover (ATO) by researching and presenting on the topic.
Show steps
  • Research ATO methods and prevention techniques.
  • Outline the presentation structure.
  • Create slides with clear explanations and visuals.
  • Practice delivering the presentation.
Review 'Payment Systems in the US'
Expand your knowledge of the US payment ecosystem and its underlying infrastructure.
View Payments Systems in the U.S.: A Guide for the... on Amazon
Show steps
  • Read chapters on card networks and ACH systems.
  • Summarize the key regulations governing payment processing.
  • Identify emerging trends in payment systems.
Develop a Risk Rule for NSF
Apply your knowledge by designing a practical risk rule to detect Non-Sufficient Funds (NSF) fraud.
Show steps
  • Identify key indicators of NSF fraud.
  • Define the conditions for triggering the risk rule.
  • Test the rule against historical transaction data.
  • Refine the rule based on testing results.
Build a Confusion Matrix Visualization
Create a data visualization of a confusion matrix to better understand model performance.
Show steps
  • Gather data from a payment risk model.
  • Calculate true positives, true negatives, false positives, and false negatives.
  • Create a visual representation of the confusion matrix.
  • Interpret the results and draw conclusions.

Career center

Learners who complete Payment Risk 101 will develop knowledge and skills that may be useful to these careers:
Risk Manager
Risk Managers are responsible for developing and implementing strategies to mitigate risks associated with payment processing and financial transactions. This involves assessing potential threats, creating risk models, and ensuring compliance with industry regulations. The Payment Risk 101 course introduces you to vital areas like card systems, chargebacks, and the ACH system, which are essential for understanding and managing payment-related risks. You'll examine topics such as risk modeling, hypothesis testing, and confidence intervals, providing a strong foundation for quantitative risk assessment. Moreover, the course's examination of Account Takeover, Stolen Financials, Non-Sufficient Funds, and Merchant Risk is essential for any aspiring Risk Manager.
See salaries and explore the career path for Risk Manager
Fraud Investigator
Fraud Investigators conduct in-depth investigations into suspected fraudulent activities within payment systems. This involves gathering evidence, interviewing witnesses, and collaborating with law enforcement to prosecute offenders. The Payment Risk 101 course introduces you to various types of payment fraud, including family fraud, Account Takeover, and Stolen Financials. Fraud Investigators can use the knowledge gained from the course to identify fraud patterns, gather evidence, and build strong cases against perpetrators. The course's case studies further enhance your ability to analyze real-world fraud scenarios. If you are interested in becoming a Fraud Investigator, this course is useful in sharpening your investigative skills.
See salaries and explore the career path for Fraud Investigator
Payment Operations Specialist
Payment Operations Specialists manage the day-to-day operations of payment processing systems, ensuring transactions are processed accurately and efficiently. This includes handling card authorizations, clearing and settlement, and addressing any issues that arise during the payment process. The Payment Risk 101 course provides a comprehensive overview of payment basics, including pull/push payments, open-loop/closed-loop systems, and card systems. Payment Operations Specialists can leverage this knowledge to troubleshoot issues, optimize payment workflows, and improve overall efficiency. Understanding chargebacks, refunds, and the ACH system allows for better handling of payment-related inquiries and discrepancies. Enrolling in this Payment Risk 101 course is useful for those seeking a role as a Payment Operations Specialist.
See salaries and explore the career path for Payment Operations Specialist
Data Analyst
Data Analysts collect, process, and analyze large datasets to identify trends, patterns, and insights that can inform business decisions. In the payment industry, Data Analysts focus on analyzing payment data to detect fraud, optimize processes, and improve risk management. The Payment Risk 101 course covers statistical concepts like hypothesis testing, confidence intervals, and confusion matrices, which are essential tools for data analysis. Data Analysts can use these techniques to build models that predict fraud, identify high-risk transactions, and segment customers based on their risk profiles. The Payment Risk 101 course is useful for those seeking to develop or enhance their data analysis skills.
See salaries and explore the career path for Data Analyst
Fraud Analyst
A Fraud Analyst plays a crucial role in identifying and preventing fraudulent activities within payment systems. This career involves analyzing transactions, monitoring accounts, and using various tools and techniques to detect suspicious patterns. The Payment Risk 101 course introduces you to payment basics, card systems, and risks such as Account Takeover, Stolen Funds, and Non-Sufficient Funds, all directly relevant to a Fraud Analyst's responsibilities. The course's coverage of fraud programs, regulations like Regulation E and Z, and concepts like the confusion matrix further prepares you for the analytical aspects of the job. The Payment Risk 101 course may prove useful, especially with its insight into identifying and preventing fraud.
See salaries and explore the career path for Fraud Analyst
Underwriter
Underwriters evaluate the risk associated with providing financial services, such as loans or credit, to individuals or businesses. This involves analyzing financial data, assessing creditworthiness, and setting appropriate terms and conditions. The Payment Risk 101 course introduces you to the concepts of merchant risk, family fraud, and various types of payment fraud. This education helps to identify potential risks associated with new merchants or customers. Additionally, understanding chargebacks and refunds provides a deeper understanding of the potential financial liabilities involved. This course is relevant to those seeking to become an Underwriter, especially within the context of financial institutions.
See salaries and explore the career path for Underwriter
Compliance Officer
Compliance Officers ensure that payment processes and systems adhere to relevant laws, regulations, and industry standards. This role involves monitoring transactions, conducting audits, and implementing policies to prevent fraud and money laundering. The Payment Risk 101 course covers regulations like Regulation E and Regulation Z, fraud programs, and authentication protocols, all critical for Compliance Officers in the payment industry. Understanding these regulations and programs helps Compliance Officers develop and enforce effective compliance measures. You'll also explore fraud detection, providing insights into identifying and preventing non-compliant activities. If you aspire to be a Compliance Officer in the payments sector, this course may prove useful, particularly focusing on regulatory compliance.
See salaries and explore the career path for Compliance Officer
Security Analyst
Security Analysts are responsible for protecting payment systems and data from cyber threats and fraud. This involves monitoring networks, detecting vulnerabilities, and implementing security measures to safeguard sensitive information. The Payment Risk 101 course covers essential aspects of payment security, including authentication methods and strategies to prevent Account Takeover attacks. Security Analysts can leverage this knowledge to design and implement robust security protocols to protect against payment fraud. Understanding how fraudsters avoid risk checks, as covered in the course, may be useful in developing proactive security measures. If you are an aspiring Security Analyst, consider the course's modules on authentication and Account Takeover prevention.
See salaries and explore the career path for Security Analyst
Auditor
Auditors evaluate the effectiveness of an organization's internal controls and compliance with regulations. In the payment industry, auditors assess the security and integrity of payment systems, fraud prevention measures, and regulatory compliance. The Payment Risk 101 course covers key regulations like Regulation E and Z, fraud programs, and authentication protocols, which auditors need to understand to conduct effective audits. The course is useful, particularly the sections on regulatory and fraud risk assessment.
See salaries and explore the career path for Auditor
Product Manager
Product Managers oversee the development and launch of payment products and services, ensuring they meet customer needs and align with business objectives. This involves conducting market research, defining product requirements, and collaborating with engineering and marketing teams. The Payment Risk 101 course provides a broad understanding of the payment ecosystem, including card systems, ACH, and emerging payment methods. Product Managers can leverage this knowledge to make informed decisions about product features, pricing, and risk management strategies. The Payment Risk 101 course may prove useful, particularly for those who want to create innovative and secure payment solutions.
See salaries and explore the career path for Product Manager
Business Development Manager
Business Development Managers identify and pursue new business opportunities within the payment industry. This involves building relationships with partners, negotiating contracts, and expanding the company's reach into new markets. The Payment Risk 101 course provides a solid understanding of the payment landscape, including different payment systems, regulations, and risk factors. Business Development Managers can leverage this knowledge to identify potential partners, assess market opportunities, and develop compelling value propositions. The Payment Risk 101 course may be helpful, especially when pitching the value of payment risk management to potential clients.
See salaries and explore the career path for Business Development Manager
Consultant
Consultants provide expert advice and guidance to organizations on a variety of business challenges. In the payment industry, consultants help companies optimize their payment processes, improve risk management, and comply with regulations. The Payment Risk 101 course offers a comprehensive overview of the payment ecosystem, including card systems, ACH, fraud prevention, and regulatory compliance. Consultants can use this knowledge to assess a client's current state, identify areas for improvement, and develop tailored solutions. The Payment Risk 101 course may be helpful, especially with the foundational knowledge of payment risk.
See salaries and explore the career path for Consultant
Financial Analyst
Financial Analysts provide financial planning, analysis, and reporting to support business decisions. In the payment industry, Financial Analysts focus on evaluating the financial performance of payment products and services, assessing investment opportunities, and managing financial risk. The Payment Risk 101 course covers key concepts like interchange fees, chargebacks, and fraud losses, which are essential for financial modeling and forecasting. Financial Analysts can use this knowledge to assess the profitability of payment products, evaluate the impact of fraud on financial performance, and develop strategies to mitigate financial risk. Those who want to enhance their financial analysis skill set may find this course useful.
See salaries and explore the career path for Financial Analyst
E-commerce Manager
E-commerce Managers oversee the online sales and marketing operations for a company. One key part of this is ensuring secure and efficient online payment processing. The Payment Risk 101 course introduces you to card systems and various types of online payment risks, such as card-not-present fraud and account takeovers. This knowledge is helpful for implementing effective fraud prevention measures, optimizing the customer checkout experience, and minimizing chargebacks. The insights into authentication methods and risk strategies may be particularly useful. E-commerce Managers may find this course helpful, especially in improving their understanding of online payment security.
See salaries and explore the career path for E-commerce Manager
Customer Support Specialist
Customer Support Specialists assist customers with payment-related inquiries and issues. This involves answering questions, resolving complaints, and providing technical support. The Payment Risk 101 course provides a basic understanding of payment processes, including card authorizations, chargebacks, and refunds. Customer Support Specialists can use this knowledge to better understand customer inquiries, troubleshoot payment problems, and provide accurate information. The course's coverage of different payment methods and risk factors helps Customer Support Specialists address a wide range of customer concerns. Those who want to improve their knowledge of payments may find this course useful.
See salaries and explore the career path for Customer Support Specialist

Reading list

We've selected two books that we think will supplement your learning. Use these to develop background knowledge, enrich your coursework, and gain a deeper understanding of the topics covered in Payment Risk 101.
Cover image
Payments Systems in the U.S.
Save
Provides a comprehensive overview of the US payment landscape, including card networks, ACH, and emerging payment methods. It's a valuable resource for understanding the infrastructure and regulations governing payment processing. This book adds more depth to the existing course. It is commonly used as a textbook at academic institutions or by industry professionals.
Payments Systems in the U.S.: A Guide for the...
Paperback
$$$
Payments Systems in the U.S. - Third Edition: A...
Kindle Edition
$
Cover image
Putting Knowledge to Work
Save
Provides a broad overview of fraud prevention techniques applicable to various industries, including payments. It's a good starting point for understanding common fraud schemes and basic countermeasures. While not specific to payment risk, it offers valuable context and foundational knowledge. This book is more valuable as additional reading than as a current reference.
Putting Knowledge to Work
Paperback
Check
Putting Knowledge to Work
Kindle Edition
Check

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Course image
Rating
4.4 Filled star Filled star Filled star Filled star Empty star
Effort
3.5 total hours
Via
Udemy
Instructor
Sean Li
Language
English
Traffic lights
Read about what's good
what should give you pause
and possible dealbreakers
Covers card authorization, clearing, and settlement, which are essential processes for understanding payment networks
Explores the ACH system, including key players, transaction types, and associated risks, which is crucial for those in the payments industry
Discusses regulations like Regulation E and Regulation Z, which are important for compliance in the payments industry
Examines statistical concepts like hypothesis testing and confidence intervals, which are foundational for risk modeling
Includes quizzes on payment regulations, fraud programs, and risk statistics, which reinforces learning and knowledge retention
Focuses primarily on the US market, which may limit its applicability for learners in other regions
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