Funding Tools: Funding Exclusion

Question 0

What are licensed transactions?

Answer 0

They are third-party or non-Visa MasterCard brands available for merchants to accept but are funded by FBMS for example Amex discover etc.

Question 1

What is funding exclusion?

Answer 1

Electronically allows FBMS to approve, hold, or divert funds from merchants Bank card or license transactions.

Question 2

And why is funding exclusion used?

Answer 2

It was created for and used only by credit risk management to manage and mitigate potential credit and fraud losses to FBMS and alliance partners.

Question 3

What does funding exclusion allow us to do?

Answer 3

Allows us to control payments to a merchant and allowing verification of transactions for legitimacy prior to funding.

Note: funding exclusion reduces the risk exposure to FDMS and it’s alliance partners

Question 4

What are the three functions of funding exclusion?

Answer 4

Approve - where credit officer can release suspended funds after confirming that deposits in question are legitimate or are in line with marches deposit history

Continue to suspend (Hold) – if credit believes there is increased risk, funds will continue to suspend, increasing withheld funds from the merchant

Divert – those funds in suspense may be diverted if it is deemed that the payment of suspect funds will be held in reserve or cars to cover confirmed risk.