Research On Merchant Fraud Risk Rating System Of China UnionPay Gansu Branch

The bank card acquiring business is a business with high returns and high risks.With the rapid development of my country’s payment and clearing market,especially the influx of non-financial payment institutions,the market size of bank card acquiring business has shown an upward trend year by year.While providing a convenient and fast payment experience,various risks faced by the bank card acquiring business have gradually emerged,especially in recent years,the frequent occurrence of credit card cash out,bank card information leakage and other risk events have disrupted the stability of the financial market.It has a great impact on people’s normal life,also damages the interests of all parties involved in the bank card acquiring business,and brings serious financial risks to the society.China Union Pay Gansu Branch was established in 2008.Although merchant fraud risk management has been taken as the main work content of risk management in the company’s daily operation process,because merchant fraud risk events are caused by multiple risk factors,the company’s operation process is not effective.There are some problems such as low identification efficiency,low accuracy,and poor management pertinence in the management of merchant fraud risk for some reason.The management process is not scientific,and there is no specific quantitative index for reference.This dissertation takes the fraud risk management of acquiring merchants within the jurisdiction of China Union Pay Gansu Branch as the research content,and constructs the merchant fraud risk rating system of China Union Pay Gansu Branch by using objective and scientific methods.Based on the financial risk management theory and comprehensive risk management theory,this paper analyzes the current status and deficiencies of the current merchant fraud risk rating methods;Risk variables,use the method of Logistic regression to screen out 28 key risk variables with greater impact from all the collected risk variables,and assign corresponding weights to build a merchant fraud risk rating system;Samples were selected from the group for effect verification,and the implementation plan and safeguard measures of the fraud risk rating system were formulated in combination with the operating status of China Union Pay Gansu Branch and the actual fraud risk management of merchants.The research of the thesis shows that by constructing a rating system,it has obvious advantages compared with the previous method that only relies on subjective judgment,and the operation process is simpler and more efficient,and the identification of fraud risk events is more accurate and more targeted,which is helpful for In order to improve the quantitative level of merchant fraud risk management of China Union Pay Gansu Branch,it provides a method reference for merchant fraud risk management,and has important reference significance for further preventing systemic financial risks and improving financial stability.