> For the complete documentation index, see [llms.txt](https://docs.payments.thalescloud.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.payments.thalescloud.io/nfc-wallet-sdk-android/implement-nfc-wallet/make-payment/implement-contactless-payments/7.-configure-cdcvm-experiences/define-risk-management.md).

# Define risk management

## Overview

To support low-value transactions (LVT) without authentication and transit payments, the **digital wallet application** must define risk management settings.

These settings:

* Apply only to digital cards that support **CDCVM** and allow LVT without authentication.
* Define the thresholds used by the LVT accumulators.

### LVT accumulators

NFC Wallet SDK tracks LVT accumulators, including:

* cumulative transaction amount without authentication
* number of consecutive LVT payments without authentication

When an accumulator reaches its configured limit, NFC Wallet SDK prompts the **end user** to authenticate.

{% hint style="info" %}
After a successful authentication (during an HVT or LVT), NFC Wallet SDK resets the accumulators.
{% endhint %}

## SDK integration

### Risk management parameters

Define risk management using `CustomConfiguration` during NFC Wallet SDK initialization. See [Initialize the NFC Wallet SDK](/nfc-wallet-sdk-android/get-started/configuration/4.-initialize-the-nfc-wallet-sdk.md#configure-payment-behavior).

The following parameters are available:

<table data-full-width="true"><thead><tr><th width="313.800048828125">Configuration parameter</th><th>Description</th></tr></thead><tbody><tr><td><code>maxConsecutivePaymentsForLVT</code></td><td>Set the maximum number of consecutive LVT payments allowed without authentication.<br>When the limit is reached, the next LVT requires authentication.<br>Default: <code>0</code> (require authentication for every LVT).<br>Maximum: <code>50</code>.<br>Note: This counter increments regardless of transaction currency.</td></tr><tr><td><code>singleTransactionAmountLimitForLVT</code></td><td>Set the maximum amount allowed per LVT without authentication.<br>Any LVT above this limit requires authentication.<br>Default: <code>0</code> (require authentication for every LVT).<br>Applies only when the transaction currency code matches <code>domesticCurrencyCode</code>.</td></tr><tr><td><code>maxCumulativeAmountForLVT</code></td><td>Set the maximum cumulative amount of LVT payments allowed without authentication.<br>When the limit is reached, the next LVT requires authentication.<br>Default: <code>0</code> (require authentication for every LVT).<br>Applies only when the transaction currency code matches <code>domesticCurrencyCode</code>.</td></tr><tr><td><code>domesticCurrencyCode</code></td><td>Set the ISO 4217 numeric currency code used for LVT accumulators.<br>Used with:<br><code>singleTransactionAmountLimitForLVT</code><br><code>maxCumulativeAmountForLVT</code><br>Accumulators update only when the transaction currency matches this value.<br>Default: <code>978</code> (Euro).</td></tr><tr><td><code>suppportTransitWithoutCDCVM</code></td><td>Enable transit payments without CDCVM.<br>Transit transactions do not update LVT accumulators (amount or count).<br>When enabled, transit payments do not require authentication.<br>Default: <code>false</code>.</td></tr></tbody></table>

The following examples show how currency minor units affect accumulator thresholds:

```java
// South Korean Won: Currency with 0 decimal
.domesticCurrencyCode(410) //KRW
.maxCumulativeAmountForLVT(10) // 10 KRW
.maxCumulativeAmountForLVT(100) // 100 KRW
.maxCumulativeAmountForLVT(1000) // 1000 KRW
.maxCumulativeAmountForLVT(10000) // 10000 KRW

// Euro: Currency with 2 decimal
.domesticCurrencyCode(978) //EUR
.maxCumulativeAmountForLVT(1) // 0.01 EUR
.maxCumulativeAmountForLVT(10) // 0.10 EUR
.maxCumulativeAmountForLVT(100) // 1.00 EUR
.maxCumulativeAmountForLVT(1000) // 10.00 EUR
.maxCumulativeAmountForLVT(10000) // 100.00 EUR

// Jordanian dinar: Currency with 3 decimal
.domesticCurrencyCode(400) //JOD
.maxCumulativeAmountForLVT(1) // 0.001 JOD
.maxCumulativeAmountForLVT(10) // 0.010 JOD
.maxCumulativeAmountForLVT(100) // 0.100 JOD
.maxCumulativeAmountForLVT(1000) // 1.000 JOD
.maxCumulativeAmountForLVT(10000) // 10.000 JOD
```

### PURE risk management

PURE (Thales white-label EMV payment network) can also provide risk configuration in the digital card profile.

When processing a transaction, NFC Wallet SDK applies PURE risk management in addition to `CustomConfiguration`.

The following table shows how PURE risk parameters interact with the risk management parameters you set in `CustomConfiguration`.

<table data-full-width="true"><thead><tr><th width="289.4444580078125">PURE risk parameter</th><th>SDK behavior</th></tr></thead><tbody><tr><td><code>maxTransactionNoCVM</code></td><td>Compare with <code>maxConsecutivePaymentsForLVT</code> and use the most restrictive (lowest) value.</td></tr><tr><td><code>muta</code></td><td>Reject the transaction when the amount exceeds this value and the transaction currency code equals <code>crmCurrencyCode</code> (from the PURE profile).</td></tr><tr><td><code>issuerCVMLimit</code></td><td><p>If the transaction currency code equals <code>domesticCurrencyCode</code>, compare with <code>singleTransactionAmountLimitForLVT</code> and use the most restrictive (lowest) value.</p><p>Otherwise, use <code>issuerCVMLimit</code>.</p></td></tr><tr><td><code>maxTransactionAmountNoCVM</code></td><td><p>If the transaction currency code equals <code>domesticCurrencyCode</code>, compare with <code>maxCumulativeAmountForLVT</code> and use the most restrictive (lowest) value.</p><p>Otherwise, use <code>maxTransactionAmountNoCVM</code>.</p></td></tr></tbody></table>


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