Know Your Customer, alternatively known as know your client or simply KYC, is the process of a business verifying the identity of its clients and assessing their suitability, along with the potential risks of illegal intentions towards the business relationship.
For the purposes of using the Paywiser system, this process involves completing the questionnaire to be enclosed with:
- scan of a personal document (passport or identity card from both sides), which is clearly visible (clear image), in color and valid
- "utility bill" (water, electricity, gas, etc.).
The KYC procedure is a prerequisite for us to make you a correct offer and later a contract. The KYC procedure must be carried out for all persons who are the owners of 10% or more of the company wishing to receive payments and from the director of the company.
The utility bill is a document that proves that you really live at the address that is listed in your personal document. We need it to implement the KYC process (more on this in the previous chapter).
The utility bill should not be older than three months. The proof can be:
- invoice for gas, electricity, water, utilities,
- cable invoice (not satellite TV),
- invoice for connecting to a fixed telephone network,
- the bank account statement,
- insurance policy statement.
Mobile service bills, for example, from a mobile operator, do not count as proof of the address. We can only accept the original invoice (scan) and not photocopy or Internet printouts.
The address indicated on the proof must correspond to the physical address of the place of residence. We can not accept proofs with the addresses of a PO box, business premises or the service for changing the address.
Your customers can choose between different payment methods to settle their agreed obligations. The payment process is similar to that already used in other payment methods.
Thus, in the case of both regular and recurring payments, the applicable legislation must be respected. Periodic payments, in addition to other legislation, are regulated by the Consumer Protection Act and the Payment Services and Systems Act.
Your customer's payment is made on the basis of his/her consent or confirmation of your general terms and conditions of business. Recurring payments or debits of your customers' accounts are automatically performed until cancelled by one or the other party.
In case you choose to inform your customers, we can also offer you SMS notification.
The availability from our side is guaranteed within the framework of systems on which we have a direct impact. All other subordinates and superior systems that are beyond our competence and/or control are not covered by what is defined in the general terms (e.g. Internet connectivity, availability of process centres, etc.). Merchants are informed about planned interventions in advance. The planned interventions are mostly carried out between 0:00 and 4:00 hours, when the frequency of the transactions is the smallest.
The time in which we ensure restoration depends on the type of error. Errors are resolved according to the "best effort" system, where we focus all reasonable forces in eliminating the error, taking into account the disturbances in the usability of the system.
Settlement is the transfer of founds (payments) to the merchant account. The Merchant determines when he/she wants to receive a settlement. Settlement intervals can be weekly, every 14 days or monthly.
The Merchant receives the money automatically on account, without any requirement. The transfer is made to the account specified in the contract. An appropriate annex to the contract is required to change the account.
A chargeback is a dispute of a purchase that has already been charged to an account that can result in a return of funds.
Chargebacks are focused on charges that have already been posted to an account, whether to a credit card account, where the consumer is expected to pay the outstanding balance by the due date or a debit account, where the consumer has already had the money deducted from a bank account.
Friendly Fraud is the most common type of online payment fraud. The customer orders the goods pays for it and then does not turn to the merchant for a refund of the purchase, but to his bank. This can be avoided by properly communicating with the customer, encouraging him to first tell the Merchant.
A refund is made, on the basis of the customer's request, by the Merchant itself, without the intervention of the bank. Chargeback, on the other hand, is the cancellation of a transaction as a result of a customer's complaint directly to the bank past the Merchant. Therefore, there is a big difference in the price charged by the bank.
There is no complete protection. However, you can reduce the likelihood of a chargeback claim in the following ways:
- use of 3D secure - some issuers explicitly request it
The transaction can be cancelled within the settlement period after the transaction. If you make a refund and chargeback request has not yet been submitted, then there is no problem and the only cost is the cost of the refund. If a chargeback is initiated, it must first be discarded or accepted, and if it is successfully discarded, make a refund, as far as this is necessary and reasonable. As a general rule, the customer should always turn to the Merchant first and arrange everything with him/her, and only after that activate a chargeback. Unfortunately, in practice, things often happen differently.
Antifraud detection is carried out by the acquiring bank and the issuing bank. Cards reported as stolen are already blocked by the transaction network. In our system, we exert limitations of transactions (daily, hourly, monthly) with respect to frequency and value; in any case, the Merchant must also take care of the fraud prevention himself. We recommend the Merchant’s Good Practice Guide to Prevent Abuse.
In the event that the Merchant uses API access, he/she accepts PCI DSS provisions that require, inter alia, an internal or external inspection. More information is available in the guide to PCI DSS standards.
Under the law on the prevention of money laundering and terrorist financing, we are obliged to check the ownership of a company, business, directly or through a competent institution. This article was introduced so that in the event of such suspicion or need for data (for example, if our bank requires them), we have the basis on which we can request this information.