BAKU, Azerbaijan, September 25. The primary
objective of the risk-based approach applied to the number of
payment cards and payment accounts linked to electronic money is to
minimize the risks of misuse of services provided by payment
service providers—including banks and electronic money
institutions—and to ensure a more consistent application of the
risk-based approach.
According to the Azerbaijan Banks Association, the rapid
development of the digital payment ecosystem, the expansion of
cashless transactions, and the rise of innovative payment solutions
in recent years have made more effective risk management
essential.
“This approach serves to promote sound payment practices, reduce
the risk of financial fraud, and strengthen the security of the
payment ecosystem,” the statement said.
It was noted that according to the current approach, except for
payment cards intended for wages, pensions and other social
benefits, payment cards related to business accounts, as well as
payment cards related to deposit accounts, 1 payment card in
national currency and 1 payment card for each foreign currency are
provided for each payment card product provided by each bank.
“This approach applies only to the specific bank in question and
does not impose any restrictions on obtaining payment cards from
other banks. At the same time, if a bank offers a payment service
user several different payment card products, the user may obtain a
separate payment card for each of those products,” the statement
emphasized.
It has been stated that a payment service user can obtain
payment cards from the same bank in both the national currency and
various foreign currencies—such as the US dollar and the euro.
The association noted that this new approach does not restrict
the use of currently active payment cards. Existing cards may
continue to be used until their expiration date or until the user
closes the account.
“If there is a need for an additional payment card from the same
bank, it is sufficient for the payment service user to contact the
bank providing the service. The bank will evaluate the request
within the framework of a risk-based approach,” the statement
said.
It is noted that the limit established for a specific user may
be increased in cases where the user provides a reasonable
explanation regarding the intended use of the payment card or the
payment account linked to electronic money, the transactions align
with the information held by the bank, and there is assurance that
the card or account is not being used for illegal purposes.
The Association emphasized that payment cards intended for
wages, pensions, and other social benefits, as well as payment
cards linked to business accounts and deposit accounts, are
excluded from the mentioned risk-based approach.
According to the information, the risk-based approach began to
be implemented on August 1, 2026. Banks and other payment service
providers are implementing this approach in stages, within the
framework of their technical capabilities and internal
procedures.
“While the fundamental principles are uniform across the sector,
different decisions may be made regarding specific payment service
users in accordance with the risk-based approach,” the statement
noted.
It is reported that the new approach enables the prevention of
the misuse of payment instruments, the reduction of financial fraud
risks, and more effective risk assessment of users by payment
service providers.
The association added that this approach does not restrict the
ability to use various payment card products from the same bank;
for instance, a user can obtain separate payment cards—such as
“AZAL Miles” and other debit or credit card products—from the same
bank.
“The mentioned approach is applied separately to each payment
card product offered by each bank. The same approach applies to
payment card products issued in both national and foreign
currencies. Within this framework, it is possible to obtain one
payment card in the national currency and one payment card for each
foreign currency for every payment card product,” the statement
noted.
