System and method for managing chargeback risk

A system for managing chargeback risk, the system comprising:

• a non-transitory memory device, wherein modules of instruction code are stored, and at least one processor associated with the memory device, and configured to execute the modules of instruction code, whereupon execution of said modules of instruction code, the at least one processor is configured to:
• receive one or more projected data transfer elements, each projected data transfer element comprising information pertaining to projection of future data transfers among nodes of the computer network, wherein the one or more projected data transfer elements are selected from a list consisting of:
• projected distribution over time of a volume of data transfers;
• and projected distribution over time of chargeback risk;
• receive a plurality of actual data transfer elements, each actual data transfer element comprising information pertaining to a respective plurality of actual data transfers among nodes of the computer network;
• receive one or more entity profile data elements each entity profile data element pertaining to a profile of one or more entities associated with one or more nodes of the computer network;
• group, by a neural network, the one or more entities to entity clusters, according to the one or more entity profile data elements of the one or more entities;
• compute a distribution of chargeback risk for each actual data transfer, based on one or more of the entity clusters, the one or more actual data transfer elements and respective one or more entity profile data elements;
• compute a CP chargeback overage based on distribution of chargeback risk of one or more actual data transfers and the one or more projected data transfer elements, wherein the computing of a CP chargeback overage comprises summing at least one distribution of chargeback risk for each of the actual data transfer transfers and of the future data transfers, iteratively modifying, by a second neural network, a CP chargeback threshold according to a predicted probability, and comparing the sum to the CP chargeback threshold;
• and
• produce a suggestion to deny an actual data transfer based on the CP chargeback overage.