Table of contents

Definition

Glossary

Physical Payments

Every payment that’s not done through our platform.
Examples: Cash, Ticket (paper) and Credit/Debit card machines.

Online Payments

All payment types done through our platform.
Examples: Credit Card, Apple Pay, Paypal, Bizum,

❓ Open questions

Requirements

Problem statement

Recent analyses have highlighted a significant risk of fraud in home delivery orders that are paid for using physical payment methods.

To safeguard our operations and protect both our business and customers from fraudulent activities, it is essential to implement additional rules that restrict the use of physical payments under certain scenarios.

Existent Cash Limitation Rules

Cash Payments Price Limit

This rule establishes a cap on cash transactions. Activation and deactivation are managed in a tool, which also adjusts the transaction limit, represented in cents.

Order Flood Limit

This rule set a limit on multiple orders for the same user, given a time. For example - how many orders the same guest can place in 1 hour.

Acceptance criteria

Physical payment methods should be hidden from the Payment Method dropdown on the Payment Method Screen. This adjustment occurs automatically and does not prompt any additional messages to the user.

The physical payment methods should not appear on the Payment Method dropdown, at Payment Method Screen, without any further message.

If any pre-set conditions are triggered, only online payments options will be displayed to the user.

Success metrics

Objective 1: Reduce Incidences of Delivery Issues for Orders with Physical Payment

• Measurement: Percentage decrease in delivery-related issues for orders utilizing physical payment methods.

• Target: Establish a benchmark based on historical data and aim for a significant reduction.

Objective 2: Maintain Overall Order Conversion Rates Post-Implementation of Physical Payment Restrictions

• Measurement: Comparison of total order conversion rates before and after the implementation of physical payment restrictions.

• Target: Ensure that the imposition of restrictions on physical payments does not result in a significant adverse impact on total order conversions.

🤔 Assumptions

All error messages and texts related to this feature will be provided Iberia. Dev team will only implement in English.

Solution

To mitigate risks associated with physical payments, we propose the introduction of three configurable limitation rules. These rules are designed to be dynamically controlled, allowing for real-time adjustments based on operational needs.

Additionally, we plan to implement detailed logging and event tracking through DataDog and Amplitude. This integration will facilitate in-depth analysis of the rules' effectiveness, user behavior, and the overall impact on transaction security and user experience. Furthermore, we will empower individual restaurants to set specific, higher thresholds for physical payment limitations if they choose.

This added flexibility ensures that the system can accommodate the unique circumstances and risk profiles of different restaurants.

Rule 1: First Order Physical Payment Limit

• Description: New customers placing their first order with a value equal to or greater than a specified amount must use online payment methods.

• Configurable Value: The threshold value, initially set to 20€, can be adjusted as needed.

• Rationale: This rule aims to reduce the risk of non-payment for first-time orders.

Rule 2: Physical Payment Amount Limit for Subsequent Orders

• Description: For all orders following the first, physical payment methods will be disabled if the order value reaches or exceeds a certain threshold.

• Configurable Value: The limit is initially set to 50€, subject to modification. The evaluation is based solely on the current order's total amount, not cumulative purchases.

• Clarification: It's crucial to note that the limitation applies to individual orders, not the cumulative total of multiple orders within a certain timeframe. For instance, a single order of 63€ would disable physical payments, whereas separate orders of 30€ and 35€ would not, provided each is considered independently.

Rule 3: Repeated Delivery Failure

• Description: Following an order that utilized a physical payment method and resulted in a delivery failure, only online payment options will be available for the customer's next order.

• Rationale: This rule is intended to prevent recurring issues with physical payments after a delivery failure, such as non-payment or fraudulent orders.

Scenarios

Scenario 1: First Order Physical Payment Limit

Scenario 2: Physical Payment Amount Limit

Scenario 3: Repeated Delivery Failure

Design

N/A

Development

Release