Category: EU Payment Regulations

  • Chargeback Management Strategies for EU Merchants

    Chargeback Management Strategies for EU Merchants

    In Europe’s high risk sectors like forex, crypto, gaming, and CBD, chargebacks can quickly erode profits and damage acquirer relationships. Staying below the 1% threshold set by EU acquirers is crucial to maintaining processing continuity.

    At KunnectPayments, we equip merchants with AI driven tools, early alerts, and automated dispute systems to stay compliant and profitable.

    1. Why Chargebacks Hurt More in Europe

    European acquirers, under PSD2 and EBA guidelines, monitor chargeback ratios monthly. Exceeding limits can trigger:

    • Account holds or termination
    • Higher rolling reserves
    • Delayed settlements

    💡 KunnectPayments ensures you stay well below EU acquirer risk thresholds.

    2. Common Chargeback Triggers

    • Insufficient transaction proof
    • Misleading billing descriptors
    • Recurring billing disputes
    • Delayed refunds or delivery
    • Unauthorized transactions

    💡 We help merchants create clear billing descriptors and strong transaction documentation to prevent disputes.

    3. KunnectPayments’ Chargeback Control Framework

    Our in-house system integrates prevention, detection, and recovery:

    • Real time chargeback alerts
    • Automated representment (dispute) filing
    • Fraud scoring & pre authorization screening
    • Analytics dashboard tracking win/loss ratios

    💡 Merchants using KunnectPayments reduce chargebacks by up to 60% within 3 months.

    4. Acquirer Relationship Management

    We act as your intermediary, negotiating with EU acquirers to:

    • Reduce rolling reserves
    • Restore paused accounts
    • Improve MID stability through consistent performance

    Conclusion

    Chargebacks are inevitable, but their impact isn’t. With KunnectPayments, you gain control, visibility, and leverage, transforming risk into stability.

    Partner with KunnectPayments for smarter chargeback prevention and long term acquirer trust.

  • PSD2, MiCA & AMLD6: Key EU Payment Regulations in 2025

    PSD2, MiCA & AMLD6: Key EU Payment Regulations in 2025

    The European payments ecosystem is evolving fast. With PSD2, MiCA, and AMLD6, compliance is no longer optional, especially for high risk merchants operating in crypto, forex, gaming, or CBD sectors.

    At KunnectPayments, we ensure every merchant setup meets EU compliance standards while maintaining flexibility and fast onboarding.

    1. PSD2 – The Core of EU Payments

    Payment Services Directive 2 (PSD2) governs how payments are processed in the EU.
    It mandates:

    • Strong Customer Authentication (SCA)
    • Licensing for PSPs and PayFacs
    • Open Banking API access
    • Transparency in fees and transactions

    💡 KunnectPayments is PSD2 ready, enabling secure card, SEPA, and API based payments.

    2. MiCA – Regulating Crypto Transactions

    The Markets in Crypto Assets (MiCA) framework, effective 2025, brings structure to crypto operations across Europe. It requires:

    • Licensing for crypto exchanges & wallets
    • Stablecoin issuance transparency
    • Cross-border crypto payment oversight

    💡 KunnectPayments integrates MiCA compliance for crypto gateways, allowing seamless fiat-to-crypto and crypto-to-fiat transactions.

    3. AMLD6 – Fighting Financial Crime

    Anti Money Laundering Directive 6 (AMLD6) expands liability and enforcement for financial institutions.
    It emphasizes:

    • Enhanced KYC/KYB checks
    • Transaction pattern monitoring
    • Shared responsibility between PSPs and merchants

    💡 Our system automates AML and KYC workflows to meet AMLD6 standards while minimizing friction.

    4. Why These Matter for High Risk Merchants

    High risk sectors face increased scrutiny. Without compliance, banks can delay settlements, hold reserves, or terminate accounts.
    KunnectPayments bridges the gap, ensuring your business is regulation ready from day one.

    5. The KunnectPayments Advantage

    • PSD2 compliant infrastructure
    • MiCA ready crypto payment rails
    • AMLD6 driven monitoring for safer settlements
    • Local support across the EEA, UK, and Switzerland

    Conclusion

    Regulations like PSD2, MiCA, and AMLD6 are shaping the future of payments in Europe. Staying compliant isn’t a burden, it’s your competitive edge.

    Partner with KunnectPayments to stay ahead of EU regulations and scale your high risk business with confidence.