Organisations undertake several types of payments during the course of their business. Whatever the value of the payment, it is important to keep an eye on them. High-value payments should be monitored if any business hopes to achieve success. However, the question is – what is a high-value transaction, and how can high-value payment monitoring protect your business?
What is a High-Value Transaction?
A high-value transaction can be classified as any transaction with a significantly higher value than average. It means that for some businesses, this could be an amount of $5,000 and above, and for some others, it could be $500,000 or more. It means that the term high value is relative and not fixed. There are several ways to determine what constitutes a high-value transaction for your business. One common method is to use the median of all transactions as a baseline indicator and treat every amount larger than this number as a high value. Alternatively, you can use the 75th percentile of every transaction recorded in your system to indicate what amounts to a high-value payment.
High-value transactions can be:
- High-risk transactions with a higher-than-average risk of fraud
- Large cash transactions with a huge chunk of cash payments
- Transactions with significant financial impact where a high-value payment is made to an account that has been blocked due to suspicious activity
Ways to monitor High-value transactions
There are several ways to monitor high-value transactions. You can
- Hire a service provider
- Use your bank’s internet banking and mobile banking apps to monitor your accounts
Why should you Monitor High-Value Payments?
Every high-value transaction carries a higher risk of fraud. The aftermath of the failure to identify fraud is many and highly damaging. It is important to ensure that all the high-value payments you make to another party go to the right account. This is where payment monitoring can help. It is necessary to stay on top of the high-value transactions and to ensure everything is smoothly run.
Some other benefits of high-value payment monitoring are:
- It protects your business from fraud
- Helps you identify inconsistencies in your company’s financial records
- Notifies of any suspicious transactions as they occur
- Ensure payments are made to the right accounts
- Improves cash flow and prevents financial losses
How to Monitor High-Value Payments?
The best method for high-value payment monitoring within your business is to use a custom-designed, automated set of tools made specifically for monitoring. With the help of high-value payment software, you will achieve a seamless payment experience for customers and stakeholders alike. In the meantime, it also helps to:
- Streamline your operations
- Reduce delivery costs
- Access real-time transaction data
- Receive automated alerts of any suspicious transaction
In short, a high-value payment monitoring system is the best way to take control of your transactions and maintain a secure, trustworthy business. Monitoring high-value payments not only protects the business from fraudulent activities but also helps to avoid financial losses. Real-time payment monitoring and control are easy with the right software. Hence, it is important to set up a high-value payment monitoring system for your business.