Using _____ delays can help mitigate risk.

Using payout delays can help mitigate risk by ensuring that funds are not released too quickly to recipients before confirming the legitimacy of a transaction. These delays provide a buffer period during which any potential fraudulent activity can be identified and addressed. This is particularly important in environments prone to chargebacks or disputes because it allows businesses to evaluate the associated transactions more thoroughly before finalizing the release of funds.

In addition, payout delays can help in managing cash flow effectively by allowing businesses to assess their current financial status before obligations are fulfilled to third parties. This strategic delay can contribute to a healthier working capital position and reduce the likelihood of financial strain caused by premature disbursements.

Choosing payout delays, therefore, is a risk management strategy that allows businesses to maintain greater control over their financial processes and protect themselves against potential losses.