Spend Rule Remediation Guide

Pattern A: MID Whitelist

Best for: Known merchants with systematic AVS issues

Step 1: Create Allow-All Base Rules
├── StreetAddressSpendRule: [MATCH, NO_MATCH, NOT_SUPPORTED, UNAVAILABLE]
└── PostalCodeVerificationSpendRule: [MATCH, NO_MATCH, NOT_SUPPORTED, UNAVAILABLE]

Step 2: Create Restrictive Velocity Rules
├── VelocityRule 1 (PER_TRANSACTION)
│   ├── Condition: AVS_STREET = NO_MATCH
│   ├── Condition: MID NOT IN [whitelist]
│   └── Action: DECLINE
└── VelocityRule 2 (PER_TRANSACTION)
    ├── Condition: AVS_POSTAL = NO_MATCH
    ├── Condition: MID NOT IN [whitelist]
    └── Action: DECLINE

Pros: Flexible for trusted merchants Cons: Requires maintaining MID lists

Pattern B: Geographic Override

Best for: International transactions

Step 1: Detect International Transaction
├── MerchantCountrySpendRule: Check if international

Step 2: Apply Relaxed AVS for International
├── ConditionalRule
│   ├── IF merchant_country != USA
│   ├── THEN allow AVS codes [MATCH, NOT_SUPPORTED, UNAVAILABLE]
│   └── ELSE require [MATCH]

Pros: Automatic for international Cons: Higher fraud risk

Pattern C: Risk-Based Tiered Override

Best for: Dynamic risk management

Step 1: Calculate Risk Score
├── Low Risk: Amount < $50 AND recurring_merchant
├── Medium Risk: Amount $50-200 OR new_merchant  
├── High Risk: Amount > $200 AND first_transaction

Step 2: Apply Tiered AVS Requirements
├── Low Risk: Allow [MATCH, NO_MATCH, NOT_SUPPORTED]
├── Medium Risk: Allow [MATCH, NO_MATCH] for postal only
└── High Risk: Require [MATCH] for both

Pros: Balances risk and approval rates Cons: Complex to implement

Pattern D: Time-Limited Override

Best for: Temporary merchant issues

Step 1: Create Temporary Rule
├── StreetAddressSpendRule: [MATCH, NO_MATCH]
├── Valid for: 7 days
└── Auto-expire: TRUE

Step 2: Monitor and Extend if Needed
├── Track decline rate
├── Monitor fraud rate
└── Decision: Extend/Modify/Remove

Pros: Limits risk exposure Cons: Requires monitoring

Pattern E: Partial Match Tolerance

Best for: Address formatting issues

Step 1: Define Partial Match Logic
├── IF postal_code = MATCH AND street = NO_MATCH
│   └── Check if amount < $100 → ALLOW
├── IF postal_code = NO_MATCH AND street = MATCH
│   └── Check if MCC is low risk → ALLOW
└── IF both = NO_MATCH → DECLINE

Pros: Nuanced approach Cons: More complex rules

Transaction Declined
├── Decline Code = RE_ENTER_TRANSACTION?
│   ├── Yes → Check AVS Response Codes
│   │   ├── Postal = NO_MATCH?
│   │   │   ├── Check if merchant is international
│   │   │   ├── Check transaction history with this MID
│   │   │   └── Suggest: Pattern A (MID Whitelist) or Pattern B (Geographic)
│   │   ├── Street = NO_MATCH?
│   │   │   ├── Check for apartment/suite in address
│   │   │   ├── Check if PO Box
│   │   │   └── Suggest: Pattern C (Risk-Based) or Pattern E (Partial Match)
│   │   └── Both = NO_MATCH?
│   │       ├── High risk - require manual review
│   │       └── Suggest: Pattern D (Time-Limited) if approved
│   └── No → Continue to next decline code
│
├── Decline Code = DO_NOT_HONOR?
│   ├── Request raw response codes from processor
│   ├── If AVS-related → Apply appropriate pattern
│   └── If not AVS → Check other rules
│
├── Decline Code = RESTRICTED_LOCATION?
│   ├── Review MerchantCountrySpendRule
│   └── Suggest: Add country to allowed list if appropriate
│
└── [Continue for other decline codes...]

User Journey Flow

1. Merchant Views Decline

   Dashboard shows:
   - Transaction ID: txn_123
   - Decline Code: RE_ENTER_TRANSACTION  
   - AVS Detail: Postal NO_MATCH
   - Merchant: "Le Café Nice" (MID: 123456)
   

2. System Analyzes Pattern

   Analysis Results:
   - Previous declines from this MID: 47
   - All with postal code: 06000
   - Success rate when bypassed: 99.2%
   - Diagnosis: Merchant hardcoding postal code
   

3. System Recommends Solution

   Recommended Action:
   - Add MID 123456 to postal bypass whitelist
   - Risk Level: LOW
   - Estimated approval increase: 47 transactions/month
   - [One-Click Implement] [Customize] [Learn More]
   

4. Merchant Implements

   Configuration Applied:
   - Rule Name: "AutoFix_Postal_MID123456"
   - Type: PostalCodeVerificationSpendRule
   - MID: 123456
   - Duration: Permanent (with monitoring)
   - [View Rule] [Set Alerts] [Undo]
   

Dashboard Metrics to Display

Quick Implementation: Add MID to Postal Bypass

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Monitoring Query: Check Override Performance

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