The cost of neglecting compliance
In today's payments ecosystem, complexity is accelerating. Card networks like Visa and Mastercard continuously update their card network rules, often issuing hundreds of changes every year. These aren't just minor adjustments. They're deep mandates affecting technology, operations, fraud, and finance.
Treating payment network compliance as a mere back-office administrative task is an expensive, high-risk position. Historically, compliance was perceived as a cost centre, not because it inherently drains value, but because the industry has relied on processes that are fundamentally inefficient and unscalable. Modern card issuers must move from a reactive "cost centre" mentality to a proactive, value-generating strategic shield through technology and structure.
The problem with manual compliance processes
The reality in many financial institutions is far from strategic. Compliance managers, operations heads, and IT teams rely on scattered tools to manage mission-critical card network updates.
- Fragmented process: Bulletins get downloaded, sit in shared folders, and get distributed by email, making tracking and prioritisation difficult.
- Error-prone tracking: Spreadsheets are often outdated and vulnerable to human error.
- Difficulty in collaboration: Multiple teams (e.g., Fraud, Disputes, IT) work in silos, creating duplication and delays.
- Weak audit trail: fragmented process and tooling make audits harder and more time-consuming.
When compliance is managed in an ad-hoc, manual way, the entire process becomes opaque, slow, and operationally vulnerable.
The hidden costs of inaction
The failure to implement card network mandates on time or correctly triggers severe and escalating consequences. These are the measurable costs that hit the balance sheet and damage market position.
Escalating financial risks
Systemic or prolonged non-compliance drives significant costs, such as:
- Direct penalties from card brands can range from £5,000 to over £100,000 per case, or sometimes until issues are fixed.
- New fee structures, such as those related to non-tokenised transactions or excessive re-attempts (the Visa Issuer "Never Approve" Fee, Mastercard Credential Continuity Programme), create recurring hidden costs that cut directly into margins.
- Missing a bulletin that introduces a new cost-saving measure (like an opt-out service) means paying unnecessary fees for card network services you don't use. This isn't theoretical. Finance teams regularly cite missing out on bulletins with financial impacts as a
Operational costs and reputational damage
Operational chaos is the constant backdrop of reactive compliance:
- IT implementation delays: Last-minute changes disrupt development and projects.
- Lost disputes: because of outdated chargeback codes or workflows.
- Lost trust: delays and disputes undermine confidence across customers, merchants and partners.
- Increased exposure: Persistent non-compliance issues escalate beyond fines and push banks into a “high-risk” status with card networks.
The case for proactive, tech-enabled compliance
Moving card network compliance from a reactive cost centre to a strategic enabler requires systemic, technology-driven change.
A proactive approach uses intelligence to orchestrate the compliance lifecycle, rather than reacting to audits and deadlines.
Early detection and foresight: Knowledge is ingested and interpreted before the deadline is critical. This provides the necessary lead time for IT and Operations teams to plan their resources proactively.
Automated distribution and tracking: Compliance actions are automatically generated, assigned to the correct role-based owner (the Head of Finance for a fee change, the IT Manager for a specification update), and progress is tracked in real time.
Centralised audit readiness: A centralised repository ensures the full compliance history is auditable, providing the Chief Risk Officer with easy audit and traceability and reducing systemic non-compliance risk.
Compliance as a strategic advantage
A reactive approach to payment network compliance will always be a drain on resources. A proactive, technology-driven strategy, anchored by an intelligent solution, turns it into a competitive advantage.
By eliminating manual inefficiencies, mitigating risk exposure to escalating fines, and enabling informed, cross-functional decision-making, structured card network compliance management does more than prevent costs. It creates the resilience and agility necessary for long-term growth in the payments space.
Rivero's Kajo is built specifically for this transformation. As an AI-powered payment intelligence platform, Kajo helps issuers:
- adopt a proactive approach for their card network compliance process
- eliminate these inefficiencies and turn compliance into a lasting competitive edge
Find out how Kajo can help your organization by booking a demo here.