Risk Management Overview
Overview
Just Walk Out technology by Amazon offers different capabilities to aid a retailer in managing risk related to fraud and abuse.
The capabilities work together to allow the merchants the ability to balance shopper experience and losses due to non payment.
The first capability is setting the pre-authorization amount to be posted to a shoppers payment mechanism.
Similar to the experience at a hotel, or gasoline station, this is a means to verify 1) that the card is valid for use - ie.
not listed as stolen, or expired and 2) a mechanism to ensure there is sufficient credit available to cover an average size
shopping trip.
Pre-auth
Pre-Auth Definition: Pre-authorization on a credit card is a temporary hold placed on a portion of the shopper's available credit limit while visiting a Just Walkout store to verify that the card is valid and card is valid and can accept a charge.
The user journey starts on the Connector Configurations page. The user can add a new configuration by clicking on the add button
The user can modify a current configuration by clicking the pencil icon to edit the value or keep the current configuration by clicking on Cancel button
Based on the configured store capabilities the user will see options to configure the applicable accounts. The user will be required to provide at least one input for each relevant method to ensure successful communication between the company integration application and Amazon systems. The user is able to configure up-to 5 accounts for each method.
Fraud and Abuse
Fraud and Abuse is used to assess the risk of an authenticated shopper during a shopping session to determine whether to open the Just Walk Out gate, this includes a combination of risk profile and outstanding balance status for the payment mechanism used to shop at the Just Walk Out enabled store.
A shopper payment mechanism outstanding balance is a basic running balance of charges and payments when used in a Just Walk Out technology enabled store. The two components are optional capabilities depending upon the merchants desired level of risk.
| Strategy | Risk Model | Outstanding Balance | Responsibility |
|---|---|---|---|
| Amazon Managed | Input to Gate decision | Amazon Maintained | Amazon |
| Amazon Recommendation | Suggested input to gate decision | Amazon Maintained | Merchant/Amazon |
| Customer Managed | Merchant owned | Merchant Managed | Merchant |
| None | N/A | N/A | Merchant |
To select the fraud and abuse strategy, please work with the Amazon team to determine the best option for the Just Walk Out enabled store.