Advanced Financial Literacy: Getting to Know More About KYC, AML, and Payment Card Issuers

Knowledge is power and a source of development and progress for any business. No matter what niche you occupy, it is a must to adhere to the accepted rules of the game and deliver top-notch financial performance standards to your customers. Issuing cards for your employees and customers is commonly the simplest way to establish your brand awareness and contribute to the efficacy of your financial relations with third parties.

However, if your financial literacy and understanding of its terms are lacking, you increase the chance to miss out on several opportunities the market presents. That is why getting a better insight into popular and sought-after industrial trends will pay it off. Stay tuned to see how to choose the best card issuers with AML and KYC in mind.

Theoretical Introductions

Far from every term in the field is self-explanatory, especially when it comes to abbreviations and acronyms. Although payment card issuers, AML, and KYC aren’t synonyms and interchangeable definitions at all, getting a better understanding of these notions and using them all for your business will surely help it thrive:

• Card issuer — simply put, it is a financial establishment that provides credit and debit cards to customers to cover the cost of services and products in the market. It might be a regular bank or an online provider like Wallester, which can issue both virtual and material cards for your business. Depending on what option you consider, the range of additional benefits will vary accordingly. For instance, in the case of Wallester, interested parties are welcome to monetize advantages like flexible white-label solutions, the ability to tokenize issued cards for several digital wallets, fraud monitoring, and much more.
• KYC — this abbreviation stands for “know your client”, which refers to a special verification system backed up by payment card issuers to confirm customer identity and credibility. KYC verification procedures are a must to comply with AML norms and standards. These include pre-cooperation and ongoing monitoring of clients and their trustworthiness to avoid terrorist financing, money laundering, or other financial operations to third parties that will violate international finance rights.
• AML — anti-money laundering regulations are there to protect the system from the illegal activities of clients. This set of norms and standards includes certain requirements both banks (or other card issuers) and their audience have to follow — from collecting end users’ data to tracking their transactions.

Payment Card Issuers and KYC

Without a doubt, modern businesses are interested in delivering more high-end and personalized services to their customers. To satisfy multiple payment habits of different audiences you might refer to through your offers, it is great to back up any online operations with your cards with KYC verification:

• This strategy helps you boost your business’s risk management, customer acceptance policy, and identification procedures, as well as track your clients’ operations within the network to prevent or at least locate any occurring issues.
• Opting for KYC in business also comes in handy to show your brand’s standards and values. It is a wonderful solution for those who want to build reliable relations between businesses and customers based on trust.
• Payment cards with KYC verification have a significant protective power, which attracts more customers to your business deals.

AML Regulations in Practice

Introducing AML standards to your business will surely make your offers more attention-grabbing. You get a powerful resource to establish higher operational norms for any online and offline transactions and financial performances, related to your brand. Thanks to anti-laundering regulations, it is simpler to prevent account hacking, skimming, and other phishing scams.         

All-in-One: How to Balance Your Payment System, KYC, and AML

To get the best out of what modern third-party services can provide, you definitely have to take a closer look at what regulations they cater to and what protection mechanisms they offer. With solutions like Wallester, a KYC-verification system for payment cards that adhere to AML standards is instantly at your disposal.

With its help, your business can achieve a more efficient, accurate, and quick operation frame. This suite of tools results in the company’s better capacity to work with risks and deliver more personalized offers to customers, which meets their needs and the global market legal norms.

Wrap It Up

With an understanding of the differences between the analyzed terms, it is way easier and smoother to locate more responsible and secure payment card issuers in the market. You don’t have to refer to traditional banking only — modern service providers like Wallester that comply with KYC and AML standards will surely come in handy with plenty of benefits for your business.