What determines the activity file parameters set by an issuer?

The parameters for activity files set by an issuer are primarily influenced by the issuer's established maximum limits for transactions. These limits are determined based on their internal risk assessment, operational capabilities, and strategic goals. Issuers must balance the desire to minimize fraud and manage risk against the need to provide customers with convenient access to funds. Therefore, the specific limits they set will reflect their policies on acceptable risk levels, as well as their business goals and operational processes.

While government regulations, customer feedback, and market trends can influence an issuer’s overall strategy, transaction limits are fundamentally an internal decision made by the issuer based on their assessments and risk management practices. This creates a standardized approach that helps protect against losses and ensure compliance with regulations while meeting customer needs.