Merchant Activity Segmentation for Stronger Alert Prioritization within Policy Monitoring
Overview
You can now leverage Merchant Activity Segmentation, powered by RFM (Recency, Frequency, Monetary) scores, within Policy Monitoring to segment merchants and create more intelligent alerting logic. This enhancement reduces noise from low-impact anomalies and policy violations, ensuring your alerts reflect both statistical significance and business relevance. Refine alert volume, reduce alert fatigue, and increase investigator efficiency with greater trust in the alerts that matter most.
What's New:
Merchant Activity Segments: Merchants are scored daily (0-9 scale) across three key dimensions to provide comprehensive merchant behavioral analysis and segment merchants into data-driven groups.
- Recency: How recently the merchant has transacted
- Frequency: How often the merchant has transacted
- Monetary: Total transaction volume
Segmentation Categories: Utilize eight pre-configured merchant segments (including High Exposure, High Velocity, and Operational Drainers) to better understand your portfolio's risk landscape.
Rule Enhancements & Filters: Apply Merchant Activity Segmentation to optimize rules, and refine and prioritize alerts with new filtering capabilities:
- Segmentation Filters: Scope rules to specific merchant activity segmentation categories for
targeted monitoring - Score Filters: Choose from your chosen merchant activity segments directly within rule parameters to define your rules
Impact:
Focus your investigative resources on high-impact alerts with additional merchant behavioral data that provides context for strategic filtering and prioritization. This update enables teams to refine alert volume, improve investigator efficiency, and strengthen confidence in your anomaly detection logic, all aligned with your operational priorities and risk tolerance.