With growth at a projected rate of 13.7% annually, and expected to reach $146.45 billion by 2030, the payment processing industry is also subject to higher levels of fraud. Specific to this industry there comes increased risk of transaction laundering in which legitimate merchants process payments for illicit purposes on behalf of a third party.
Anti-Money Laundering (AML) requirements are increasingly stringent for payment processors. It’s critical that firms understand their obligations. But also, how collaboration between the front, middle and back office should not be a blocker for the business.
Whether it’s a legal requirement or a best practice, understanding how to protect your payment processing company from fraud, money laundering and other financial crimes is critical to operations.
Payments processors and compliance
As a payments provider, you will know that positive interactions with your clients are key for success. Mistakes, sluggish processes, and delays are not easily accepted by efficiency-hungry consumers. They want instant responses in today’s burgeoning retail environment. Whether that be on the High Street or, more likely, via online transactions.
Retailers expect support from their payments providers in delivering a 5-star service, but this must be balanced against the possibility of crime. Fraud cases present a substantial cost to payment firms, but they are ‘no match’ for the fines that global regulators can impose for those that do not meet KYC and AML obligations.
That utopia can often be difficult to deliver. Particularly when the transaction requires onboarding of the client’s details, cross border payments, meeting international standards as well as data and security requirements.
Balancing the need for smooth, friction-free onboarding, with the necessities of verification on several levels, is always difficult. The introduction of multi-national transactions is just a complicating factor. That said, providing an efficient, client-focused service is still a priority, if long-term relationships and satisfaction are to be achieved, so finding a solution is crucial.
NorthRow – simple, effective and compliant onboarding, with no fuss
NorthRow’s cross border digital solution will automate processes that have previously been an onerous and complex set of onboarding tasks and workflows. By using automated processes, NorthRow’s platform delivers accurate and compliant results, efficiently and with reduced abandonment rates, which enhances conversion and builds loyalty.
Most clients know little of the intricacies and necessities of identity verification, and they don’t want to know. They simply want their transaction completed as quickly and efficiently as possible. So, delivering an efficient and seamless KYC service, whilst thoroughly meeting your compliance obligations, makes NorthRow your ideal payments onboarding partner.
And the solution is totally flexible. You can start off small and increase as and when you need to with the scalable solution. This helps you manage internal costs and improves your risk management processes.
NorthRow’s solution removes traditional integration and downtime concerns
This single API solution, which can be used as a stand-alone platform or alongside our intuitive web platform, is designed to be easily integrated into your existing workflows, systems and CRM platforms. That means that you can start to transform your compliance and onboarding processes immediately, without the fear that it will disrupt your workflows or processes.
Whilst due diligence and identity verification are critical at the point of onboarding, data is subject to constant change. Front-end onboarding is important, but so too is ongoing monitoring.
NorthRow’s platform provides an ideal solution, as it delivers advanced due diligence, including PEPs and Sanctions, as well as company data and adverse media checks. All of this can be included in an ongoing monitoring programme. NorthRow provides automated, real-time updates of your data records, that identify new risks and reduces your business risk. All of which supports your efforts to deliver on your obligations providing AML compliance, thereby avoiding the potential for fines, sanctions and reputational damage.
Collaborative compliance provider
Using a solution like NorthRow, payment firms can have the ultimate toolset to interrogate data, generate profiles and use the data to monitor client activity throughout the customer lifecycle.
As a payments provider, under pressure to provide an efficient, customer-satisfying service, whilst delivering on AML compliance obligations, NorthRow’s solutions can be your best friends.
We provide a holistic KYC solution that can identify and verify the identity of individuals and non-individuals through multiple channels and sources at very fast speeds. Payment firms cannot meet the significant investment in technology they spend themselves. Instead, they should capitalise on an innovative partner such as NorthRow that can provide an ‘out of the box’ solution.