We are thrilled to share that Enfuce has selected Rivero as its partner to enhance efficiency in their scheme compliance process.

Our all-in-one scheme compliance solution, Kajo, will enable Enfuce to empower their organisation to mitigate the risk of non-compliance.

We’re thrilled to announce that Enfuce has selected Rivero as its partner to drive greater efficiency and control in scheme compliance management. By implementing Rivero’s all-in-one compliance solution, Kajo, Enfuce will empower its organization to stay fully aligned with payment scheme requirements while significantly reducing the risk of non-compliance. 

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Enfuce Chooses Rivero and Kajo to Streamline Scheme Compliance

Learn about the operational challenges and risks associated with the fraud & dispute process for banks and explore strategies and best practices benefitting both banks and their cardholders.

Fraud & Disputes

Chargeback fraud has become a significant challenge in the digital age of commerce. It occurs when a cardholder makes a purchase with their credit or debit card and then requests a chargeback from the issuing bank after receiving the goods or services, claiming that the transaction was fraudulent or the product was never delivered. ​​

In some cases, the consumer might have forgotten about the transactions, or a family member might have performed the transaction without their knowledge, the so-called “friendly fraud” or “family fraud”. However, in other cases, fraudsters might misuse the cardholder protection rules of the schemes to dispute legitimate charges to their cards. 

Such dishonest practice is most likely to strike during peak shopping periods such as the holiday seasons, Black Friday, and Cyber Monday. During these times, transaction volumes surge, providing a cover for fraudsters to dispute legitimate charges. Retailers, already dealing with increased sales activity, may not have the time or resources to scrutinise these requests as closely, leading to higher instances of chargeback fraud.  

This not only results in a loss of revenue for the merchant but also in additional fees and operational costs for card issuers and banks to process those claims.

The rise in chargeback fraud is worrying and hurting the whole payment ecosystem. First, it undermines the trust between consumers, merchants, and banks. Second, it increases operational costs for banks and merchants as they have to spend resources to process those chargebacks. Lastly, it potentially inflates prices for all consumers, as businesses often pass these costs on to their customers.

Card issuers and banks are at a critical juncture with the increasing prevalence of chargeback fraud. While the growing consumer awareness of chargeback rights has been beneficial in empowering customers, it has also opened the door to fraudulent disputes. Processing payment disputes is increasingly a burden on banks. We have observed small to medium-sized banks in central Europe with a team of 20-30  solely dedicated to managing fraud and cardholder disputes.

This situation calls for a careful balancing act. Banks and card issuers need to protect their customers from genuine fraud while also safeguarding themselves and merchants from illegitimate chargebacks. What can be done? 

#1 Streamline fraud and dispute management process 

Most issuers agree that their existing internal processes and chargeback solutions do not allow for process automation or efficiency gains. Without improvement in their processes and internal tooling, there is a risk of having a huge backlog of claims that cannot be processed in time (chargeback is a time-sensitive process). Therefore, banks have to write off such fraud claims (refund the cardholders) without being able to analyse them.

By making the process more efficient and leveraging modern solutions to automate repetitive parts, banks can better allocate their resources and reject unjustified claims with no chargeback rights (e.g., an authorised Card Not Present transaction has no chargeback right).

To circumvent the costs and operational challenges of unjustified/fraudulent chargebacks, it is important to examine transactions and cardholder statements for signs of chargeback fraud. One way to do this is to leverage domain-specific chatbots that are built based on the dispute rules of payment networks. Such chatbots can challenge cardholders when they want to dispute a transaction that has chargeback fraud indicators, such as repeat transactions at the same merchant without previous disputes, card-on-file transactions, and purchases of digital goods on e-commerce platforms like app stores.

Striking a balance between rigorously investigating potential fraud and maintaining a positive cardholder experience is key. Therefore, offering in-depth transaction insights can serve as a powerful tool in identifying more concrete signs of friendly fraud, thereby facilitating a more effective and nuanced approach to dispute resolution.

#3 Provide in-depth transaction data sharing and security

Cardholders might initiate unjustified disputes over charges they don’t recognize due to forgetfulness, confusing merchant identifiers, or transactions made by relatives without their knowledge. To mitigate such claims, issuing banks can offer comprehensive transaction details, facilitating easier identification by the cardholder or prompting discussions among family members.

 (owned by Visa), it’s now feasible to equip cardholders with extensive transaction insights. This can include presenting an alternate name for the merchant, showcasing the merchant’s logo, and providing contact information, physical address, or specifics about the purchasing device. For certain retailers, it’s also possible to access a digital receipt outlining the purchased items or services. Such measures can jog the cardholder’s memory about the transaction, reducing the likelihood of unfounded disputes.

As digital transactions continue to grow, the potential for chargeback fraud also rises. By proactively addressing the challenges of this crime, banks can safeguard their operations, minimise losses and protect their cardholders.

The battle against chargeback fraud requires collaboration from all stakeholders in the payment ecosystem. By implementing these recommendations, issuing banks can not only mitigate the risks associated with chargeback fraud but also enhance their service offerings, fostering a safer and more trustworthy environment for digital transactions and a happier, more loyal customer base. 

Chargeback fraud has become a significant challenge in the digital age of commerce. It occurs when a cardholder makes a purchase with their credit or debit card and then requests a chargeback from the issuing bank after receiving the goods or services, claiming that the transaction was fraudulent or the product was never delivered. ​​



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How banks can effectively manage chargeback fraud

Learn about the operational challenges and risks associated with compliance with payment networks like Visa and Mastercard and find out how to simplify this process and make it more manageable and efficient.

Scheme Compliance

In the financial sector, particularly within card payment operations, compliance is essential to maintaining operational integrity and customer trust. Adhering to the licensing rules of international payment networks like Mastercard and Visa is crucial, since non-compliance can lead to substantial financial penalties, and, in severe cases, even result in the restriction or loss of licences.

However, the implications extend beyond financial penalties. Non-compliance can disrupt business operations, damage reputations, and deteriorate customer relationships by causing payment delays and transaction issues.

, which serves as a comprehensive guide for scheme compliance managers to ensure compliance is managed efficiently. This checklist is designed to simplify the challenges of compliance through a structured approach, including everything from governance and reporting to effective management of waivers and variances.

In the financial sector, particularly within card payment operations, compliance is essential to maintaining operational integrity and customer trust. Adhering to the licensing rules of international payment networks like Mastercard and Visa is crucial, since non-compliance can lead to substantial financial penalties, and, in severe cases, even result in the restriction or loss of licences.



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The ultimate scheme compliance checklist for financial institutions

An article published by McKinsey & Company highlights the critical opportunity for banks to enhance customer relationships while reducing operational costs. 

Although payment disputes occur in less than 1% of transactions, their impact on customer trust and loyalty is profound. The article mentions that by reimagining the dispute resolution process, banks can not only mitigate the frustration and inconvenience associated with these disputes but also seize a valuable chance to strengthen their bond with customers.

➤ Complex Operating Models: Traditional structures create a fragmented chain of responsibility, leading to customer dissatisfaction and inefficiency.

➤ Overprocessing of Disputes: A one-size-fits-all approach to disputes, regardless of context, increases volumes and pressure on teams, affecting efficiency and regulatory compliance.

➤ Over-reliance on Case-Management Systems: While case-management systems were expected to reduce costs, their effectiveness is limited without integration into broader systems for a streamlined resolution process.

➤ Increasing Regulatory Focus: Tightened regulations demand quicker dispute resolutions, pushing banks towards faster credit provision without addressing root causes.

According to McKinsey, leveraging automation can reduce dispute-resolution cycle times, boost operational efficiency, and improve the overall customer experience. Here is how:

➤ Dispute Management: Automation can streamline the entire process, from initial complaint to resolution, ensuring a smoother, more efficient pathway.

➤ Dispute Processing: Automated systems (e.g., Virtual Agents/Chatbot) can gather necessary information and prepare cases for human processing, streamlining the initial stages of dispute resolution.

➤ Post-Dispute Processing: Handling the issuance of credits and communicating updates to customers, improving the post-resolution experience.

➤ Dispute Support: Intelligent support tools, such as virtual agents or chatbot functions in the bank’s app or portal, to resolve customer queries during the dispute-research process.

Furthermore, McKinsey underscores the financial and relational benefits of refining the dispute resolution process. Quick resolutions and provisional funds can transform negative customer experiences into loyalty-building moments. This not only solidifies customer relationships but also offers substantial cost reductions. The top 15 US banks spend about $3 billion annually on dispute processing, and McKinsey suggests that implementing next-generation operating models could reduce these costs by 25 to 40 percent. By simplifying and automating the process, banks can achieve better outcomes, reducing the incidence of incorrect dispute resolutions, which affect up to 10 percent of cases for some banks.

Redesigning the dispute resolution process, though challenging, holds the potential to significantly enhance customer loyalty, operational efficiency, and financial performance.

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Reimagining dispute resolution: strengthen customer relationships and cut costs

In this section, you can read featured success stories from banks that have leveraged our products.

Success Stories

 began his career in the payment sector at Cornèr Bank in 1992, starting out as a programmer. Over the years, he gradually transitioned to the business aspects of payments. For the past 12 years, he has been dedicated to his role as head of IT card management and scheme compliance manager at Cornèrcard and stepped into the Vice President position in 2020.

 has worked at Cornèr Bank for more than 21 years, starting out as a Divisional Financial Controller. He transitioned into the scheme compliance domain in 2017 and has been a scheme compliance manager since then, ensuring the banks' adherence to the payment networks’ standards and regulations. 

What challenges have you been facing in managing compliance with payment networks?

The organisation and scheme management processes were becoming increasingly complex, leading to an escalating workload each year. We had a large team dedicated to analysing scheme announcements, holding monthly meetings, manually downloading these announcements, and individually checking them. 

This process also involved meticulously tracking the responsible stakeholders, timelines, and deadlines. However, the manual nature of these tasks presented risks, especially when issues arose, making it challenging to trace back to the root of decisions and understand the reasoning for a compliance oversight. 

In an effort to streamline our processes, we transitioned from using spreadsheets to adopting other tools. Despite these efforts, managing these tasks remained cumbersome. Our goal was to consolidate all relevant information in one place, ensuring clear accountability for each decision.

We recognised the need for improvement but were not aware of any solutions on the market that could help us. When we learnt about Kajo, we realised that Kajo could very well address our needs and help us with the challenges we were facing.

With Kajo, we not only streamlined and centralised our scheme compliance process in one place but can now keep a good audit trail of all compliance-related decisions and activities. This allows us to easily review and understand the rationale behind each compliance decision and action.

How was the onboarding process? Did you face any challenges in the adoption of Kajo across your organisation?

Initially, it was a challenge for our team. However, that sentiment faded when Kajo showed its value to the stakeholders. Kajo's capabilities in streamlining the process and distribution of schemes-related announcements and activities convinced the stakeholders.

In addition, Kajo's simple and user-friendly interface made the onboarding process for new team members very easy and accelerated the adoption of the product across the organisation.

How did the process improve after the adoption of Kajo?

Kajo has transformed our approach to scheme compliance management, making it more efficient and reliable. For example, by integrating Kajo and tailoring it to our company's compliance framework, we no longer have to sift through information irrelevant to us. Kajo filters out irrelevant scheme announcements, making it easier for us to focus on updates and mandates impacting our business. In addition, the reminder system for overdue tasks has been particularly beneficial in preventing missing deadlines.


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Could you please share your experience working with Rivero?

We have had a very positive experience working with Rivero. The Kajo team is very responsive and knowledgeable. They have always helped us when we had questions or faced issues. The team's openness to feedback and continuous updates based on our needs have made Kajo an indispensable tool for our compliance management.

Francesco Cornercard Kajo experience

A sit-down with Francesco di Meo & Christian Tessari on their experience with Kajo


Cornèrcard Success Story

Simplifying scheme compliance: Cornèrcard's success with Kajo

Sandra has built a solid career in the finance industry, accumulating more than 20 years of experience. She joined Bank Frick in 2019 and has since been responsible for managing compliance and underwriting operations in e-commerce.

Please tell us about the challenges you were facing in the scheme compliance process.

Before adopting Kajo, we dealt with a lot of manual tasks. We needed to constantly monitor the Mastercard and Visa portals for all the latest updates, examine all information thoroughly, and identify the parts relevant to our role as a European acquirer. This process also required us to determine which teams in our company would be affected, inform them about the updates, and ask for their feedback on the compliance status.

When multiple departments were involved, we actively reached out to each stakeholder and held frequent internal meetings to keep everyone informed and clear about their tasks. This process was also quite time-consuming.

The administrative work and communication were getting heavier, given that the schemes’ frequency of publishing new compliance requirements was not slowing down. 

In addition, the varying methods of managing and tracking compliance within our team sometimes added to the complexity.

We had been seeking a long-term solution to streamline our processes, yet we did not find one until we encountered Rivero, a European FinTech.

The simplicity and user-friendliness of their system stood out to us. Instead of an overly complex compliance solution with unnecessary features, we wanted a straightforward solution dedicated to scheme compliance.

How did Kajo help with operational efficiency in the scheme compliance process?

Kajo has notably streamlined our processes. Distributing bulletins and informing various impacted stakeholders is now as simple as a click of a button. I can effortlessly review Kajo's suggestions about the impacted stakeholders and ensure that the relevant people are assigned to the bulletin or determine if someone else needs to be involved. 

The bulletin overview greatly aids in tracking our compliance status, clearly showing what has been completed and what is still pending. This level of visibility is essential, especially when involving multiple departments. We sometimes have compliance requirements that involve several teams, including operations, risk, compliance, and finance. Kajo has made collaborating in these cases much more efficient compared to past experiences.

Moreover, Kajo notifications make it easy to track when a stakeholder provides feedback and when a task is completed. 

The way we communicate and collaborate on the compliance requirements within the organisation has improved significantly. Previously, numerous meetings and calls were necessary to ensure everyone had the same understanding of the tasks. Now, we efficiently use features like notes and comments in Kajo to communicate and stay informed about the compliance activities of other teams on the same requirement.

Adopting Kajo has enhanced our processes and work practices and has brought about notable improvement. Getting started with Kajo was relatively easy, and the feedback from everyone in our organisation has been positive, regarding the solution as simple, easy to navigate and intuitive.

What is your experience working with Rivero?

Working with Rivero has significantly streamlined and simplified our processes. The tool is very user-friendly. Kajo is a straightforward solution which focuses on scheme compliance. Tracking tasks and gaining a comprehensive view of the status of each department and all individuals involved is very easy. 

The Kajo team and customer support receive a five-star review from me. Their solution-oriented approach makes working with them a delightful experience.

An interview with Sandra Willi, scheme compliance and underwriting operations manager at Bank Frick.

Bank Frick Success Story

How Kajo helped Bank Frick simplify the compliance process with payment networks

Our collection of guides and reports is built for issuers who want clear, practical advice on today’s payment challenges. Download and read at your own pace.

Guides & Reports

Learn how to move beyond manual tracking and fragmented processes. This guide explains how to create a compliance workflow that’s proactive, efficient, and adaptable, giving you control without adding unnecessary workload.



Compliance doesn’t have to be complex. This eBook shows how issuers can take a smarter, simpler approach to meeting payment network requirements.

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Scheme compliance reimagined

We are frequently invited as guest speakers on topics related to payments. Here you will find our latest appearances.

Podcasts

Our Co-Founder and CEO, Thomas Müller, recently joined PCN for an insightful podcast discussion on Rivero’s journey and how our products help Issuing banks simplify payment processes such as card payment disputes and scheme compliance management.

Our Co-Founder and CEO, Thomas Müller, recently joined PCN for an insightful podcast discussion on Rivero’s journey and how our products help Issuing banks simplify payment processes such as card payment disputes and scheme compliance management.



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🎧 Reinventing Payment Operations

Gain exclusive insights into the evolving world of payments that are reshaping the banking sector and enhancing customer experiences.

Thought Leadership

The integration of large language models (LLMs) like GPT-4 in regulatory technology (RegTech) and payment systems marks a new era in the financial sector. With their advanced language processing capabilities, these models have already generated a lot of buzz. 

They are set to revolutionise how financial institutions manage compliance, risk, customer interactions, and transaction processing. However, when it comes to the transformative potential of LLMs in these domains, there is still a question about how we balance the promise they hold against the challenges they pose.

LLMs can offer highly efficient tools to navigate the ever-growing maze of financial regulations. They can offer interpretation of complex regulatory texts and real-time compliance guidance. This capability extends to monitoring regulatory changes globally, ensuring financial institutions adapt swiftly to new requirements.

Risk management also can benefit from the use of LLMs. By analysing extensive datasets, including unstructured data like emails or social media posts, LLMs can reveal hidden risk patterns and potential compliance breaches. This proactive approach is vital in mitigating financial crimes like fraud and money laundering, which are increasingly sophisticated and elusive.

Yet reliance on LLMs for regulatory interpretation could lead to oversights if the model misinterprets nuanced legal language or lacks updates on the latest regulations. While LLMs can be leveraged as supportive tools to interpret compliance requirements or identify hidden risk patterns in risk management, they may also generate false information, leading to unnecessary investigations and resource allocation. 

Elevating Customer Experience in Payments

LLMs are also redefining customer engagement in payment systems. Their ability to understand and respond to natural languages allows for more personalised and intuitive customer interactions. This immediacy in communication, crucial in the fast-paced financial world, can enhance customer satisfaction and loyalty.

The deployment of LLMs in conversational interfaces can simplify payment processes, catering to a broader range of customers, including those less familiar with digital services. For example, an LLM-powered chatbot on a website can assist senior citizens in navigating online payments, ensuring they can do online banking without difficulty. This human-centric approach is not just about ease of use of services; it’s about inclusivity and accessibility.

Despite these benefits, there are challenges in ensuring these systems accurately interpret diverse dialects and slang, potentially leading to misunderstandings. In addition, in highly regulated domains like payments, processes and rules are more strictly defined, and therefore, an over-reliance on automated systems could lead to misinterpretation of rules and miscommunication in customer service. For example, an automated customer service system mistakenly suggests to a user that they have a dispute right for a two-factor authenticated payment, whereas according to the dispute rules of payment networks, there is no chargeback right for the transaction.

Any bias or error in LLM outputs can have significant repercussions, given the sensitive and highly regulated nature of the financial industry. Another tricky area is data privacy and security are paramount. As LLMs may process sensitive or confidential information, robust measures must be in place to protect data and comply with stringent data privacy and confidentiality in the financial sector.

LLM outputs are also not reproducible and deterministic, making them hard to apply to cases where the decisions are rule-based and, therefore, should be reproducible across multiple cases. The fact that these complex models often operate as 'black boxes' makes it challenging to understand and explain their decision-making processes. Therefore, this makes them even less applicable to domains where transparency and explainability of decisions among stakeholders and regulatory bodies are required.

While LLMs in the financial sector can offer groundbreaking opportunities, their successful integration into core processes rests on addressing these challenges.

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The Next Phase for LLMs for RegTech and Payments

Simplifying payment operations for banks — scheme compliance, dispute management, fraud recovery and industry trends.