Fraud, AML & Compliance Oversight – Partner Expectations
As part of the Passive Integration BIN Sponsorship model, partners are expected to maintain adequate Fraud Prevention, AML Transaction Monitoring, Compliance, and Operational Risk Management capabilities throughout the lifecycle of the Program.
In order to support Paynetics’ regulatory and oversight obligations as Issuer, partners should be able to provide ongoing monitoring data, risk metrics, and operational reporting related to fraud, AML, transaction activity, and Chargeback performance.
The reporting framework is expected to cover, at minimum, the following areas:
Fraud monitoring and fraud risk exposure;
AML transaction monitoring and suspicious activity oversight;
Monitoring rule and control performance;
Transaction and portfolio activity;
Merchant and product risk analysis;
Chargeback and dispute monitoring;
Compliance risk indicators and operational performance metrics.
Partners are expected to maintain:
Appropriate fraud and AML monitoring controls;
Governance and escalation processes;
Monitoring and investigation capabilities;
Rule management and change controls;
Adequate operational support and incident management processes.
The reporting requirements may include periodic provision of:
Fraud and AML alerts/case metrics;
Fraud loss and chargeback data;
Transaction and portfolio statistics;
Monitoring rule performance data;
Emerging risk and trend analysis;
Operational and SLA-related metrics.
Further detailed reporting requirements, templates, frequencies, and delivery standards will be agreed during the onboarding and integration process.
Anti-Money Laundering. A set of laws, regulations, and procedures designed to detect and prevent criminals from disguising illegally obtained funds as legitimate income. Financial institutions must maintain AML programmes including transaction monitoring, suspicious-activity reporting, and sanctions screening.
A Partner is the entity that integrates Paynetics’ services and offers them to end customers.
Partners operate within their own instance and manage users, merchants, applications, and programs. They define fees, user flows, and configurations within the limits of their contractual agreement and may be responsible for KYC or KYB processing.
The partner is the primary integrator and owner of the end-to-end solution built on Paynetics.
An arrangement in which Paynetics, as a Principal Member of a card scheme, extends its BIN to a Programme Manager's card programmes. The Programme Manager runs the cardholder ledger and authorisation logic; Paynetics holds the regulatory and scheme relationship.
A Program defines the configuration under which accounts and cards operate.
Programs specify:
supported currencies
account and IBAN generation rules
availability of virtual and physical cards
default card behaviour such as limits, fees, usage controls, and wallet enablement
Each account is created under a specific program and references it via a program code, which is provided during partner onboarding.
Programs establish default behaviour at both account level and card level. These defaults can be refined later through API configuration where applicable.
A transaction reversal initiated by the cardholder's bank on the cardholder's behalf, typically in response to a disputed transaction. The acquiring bank is required to return funds to the issuer, and the merchant may bear the loss depending on the dispute outcome.
A Merchant represents a business entity that accepts payments or uses acquiring-related services.
Merchants are created within an instance and can be associated with one or more accounts, including funding and settlement accounts. Merchant configuration is subject to underwriting and card scheme approvals, depending on the services enabled.
Merchants become operational through merchant onboarding, once the relevant application has been approved.