Payment Initiation Service Provider is a payments platform that facilitates account to account bank payments in real time. It's a fast and secure way to pay. In addition, Payment Initiation Service Provider provides value added services for a business to enable customer engagement and loyalty with incentives and rewards integrated into the payment experience.
Payment initiation is a payment method that improves checkout experience for a customer. This could be via a checkout button or a payment link using a QR code or an SMS message. At checkout, when you choose payment initiation as your payment method, you will be asked to select your bank which then creates a secure link in order to authorise your payment. Once the transaction is authorised, you are redirected back to the checkout page. No card details are needed, there’s no need to create an account and no personal financial information is shared.
Select. Connect. Approve.
• At checkout, look for the payment initiation button and select as your payment method.
• Follow the simple steps to choose and connect securely to your bank.
• Approve your purchase, securely via your banking app or with online banking.
After payment approval you will be redirected back to our checkout page. No card details are needed, there’s no need to create an account and your personal financial information stays between you and your bank.
When a customer uses Payment Initiation, a secure connection is created between the customer and the bank to authorise a payment. No payment credentials are shared and you authenticate using your banking login details such as FaceID or TouchID, making it much more difficult for a fraudster to make a transaction using your information.
No, customers do not need to create a new account with Payment Initiation Service Provider to use payment initiation. Simply select payment initiation at checkout and follow simple steps to securely connect with your bank to authorise the payment.
Anywhere where you see the payment initiation logo or the QR code. We are working with partners and retailers to bring payment initiation to more checkouts over the next few months.
There are three simple steps to payment initiation. When you choose payment initiation as your payment method you will be asked to select your bank, you'll then be redirected via secure link to your banking app or online banking to authorise the payment. Once the transaction is authorised, you are redirected back to the checkout page.
Where a QR code is included in an invoice or bill as a payment method, simply scan the QR code using your camera on your mobile phone and this will take you to a secure link to select your bank and authorise your payment.
Some banks in the EU are charging consumers for using SEPA instant. Whilst this is the consumer Banks prerogative to do so, we at Payment Initiation Service Provider : believe it to be a small number of banks across the EU as we identify these we are working with them to understand the reason why and how we can encourage them to stop on consumer and merchant behalf.
Increasingly sophisticated techniques to steal money used by criminals:
• Fraud - when criminals use techniques to obtain your account or card details and use those details to make transactions without your knowledge;
• Scam - when criminals trick you into making a transaction you suspect to be real, and is instead to them. This typically comes from them pretending to be someone they are not.
APP fraud is when criminals trick you or use persuasion to get you to transfer money to another account. APP fraud has increased dramatically since the beginning of the pandemic. The most common forms are:
• Investment scams, when criminals convince their victims to move their money to a fake fund or to pay for a fictitious investment;
• Charity scam, when scammers will take advantage of your kind spirit and get you to donate to a cause you care about - but the funds go straight to them;
• Romance scams, when criminals claim to be romantically interested in you and take advantage of your emotions in order to convince you to send them your money;
• Impersonation scams, when scammers pretend to be from an organisation such as a bank, utility company, or tax authority. They might tell you there is something urgently wrong and you need to move your money, often they’ll emphasise that they need it quickly, or that there is a time limit.
• Be suspicious of ‘too good to be true’ offers or prices;
• Shop with retailers that are reputable and reliable. As a rule of thumb, their website URLs should start with https. not http. Look for a padlock icon before the website name indicating that the site is secured with a digital certificate;
• Never share PINs, passwords, one time passcodes or personal details over the phone or to an online chat support;
• Read online reviews to check websites and sellers are genuine, and ask to see high value items in person or via video, as well as getting copies of documentation to ensure the seller owns the item;
• Purchase branded items from the list of authorised sellers listed on their official websites;
• Always access the website you’re buying from by typing it into your web browser. Don’t follow links in unsolicited emails or texts;
• Always ensure you click ‘log out’ or ‘sign out’ of websites;
Money laundering is activity aimed at hiding the true source of illegally obtained funds or other assets.
Terrorist financing is providing financial assistance in any form for the purpose of terrorist activity or to individuals who plan terrorist activity, or who lead it.
International and Republic of Lithuania legislation provide a requirement for financial institutions to implement the “Know Your Customer” principle in relation to new and current customers, specifying that financial institutions have a duty to:
• know what activities the customer is engaged in (what is the nature of his business), analyse his activities;
• know who the beneficiaries of the customer are, i.e. natural persons in whose interests or for whose benefit the transactions or activities are carried out (the beneficiary of a legal identity is determined on the number of natural person(s), regardless of the number of controlling legal entities);
• to carry out regular monitoring of the customer’s business relations, including examination of transactions concluded during such relations, to ensure that the executed transactions correspond to the financial institution’s knowledge of the customer and his business (type and nature of business, nature of transactions, business partners, field of operations, etc.) and the nature of the risk. Payment transactions are also considered to be transactions;
• to understand the source (origin) of the customer’s funds.
The financial institution must also ensure that the money laundering and terrorist financing risk assessment is based on up-to-date and accurate information, and it must therefore regularly review and update the documents, data and information provided during the identification of the customer and the beneficiary. This provision applies not only to new but also to existing bank customers. The customer must notify the financial institution about any changes in his data.
The principle Republic of Lithuania laws that set the requirements in the field of prevention of money laundering and terrorist financing are:
Republic of Lithuania Law on the Prevention of Money Laundering and Terrorist Financing (and other legislation subsequently adopted on this foundation);
Decision No. 03-17 of 12-02-2015 of the Board of the Bank of Lithuania to approve instructions to Finance market participants, seeking to block the path to money laundering and/or terrorist financing (new version No. 03-15 of 30-01-2020).
All current Republic of Lithuania laws are publicly available at the website www.lrs.lt.
Financial institutions are bound by very strict legal requirements to implement the “Know Your Customer” principle and to reduce the various risks associated with illegal activities. The implementation of the “Know Your Customer” principle is linked to the application of international measures to prevent money laundering and terrorist financing. Financial institutions must ensure that their infrastructure is not used by individuals who pose a threat to others and must therefore ensure that the origin of the customer’s assets and funds is transparent, that monetary transactions are understandable, economically sound and in line with declared activities.
The concept of politically exposed person is specified in legislation, which states that politically exposed person is a natural person, who presently occupies or in the recent 12 months have held an important public position in any state and/or international or foreign state institutions, and his close family members (the spouse, the person with whom partnership has been registered (hereinafter – the cohabitant), parents, brothers, sisters, children, children’s spouses and children’s cohabitants) or his close associates (a natural person who participates in the same legal entity or an organisation not having legal personality, or maintains any other business relationship with the person who presently occupy or have held an important public position;
A natural person who has sole beneficial ownership of the legal entity or an organisation not having legal personality which has been set up or is operating for the de facto financial or any other private benefit of the person who presently occupies or has held an important public position). When deciding whether a relative is a politically exposed person, the above-mentioned concept of a close family member must be followed, as only these close family members are considered to be politically exposed persons. Information on politically exposed persons is collected as required by the Republic of Lithuania Law on the Prevention of Money Laundering and Terrorist Financing.
Important public position shall be considered the following:
• Head of the State, Head of the Government, a minister, a vice minister or a deputy minister, State Secretary, the Chancellor of the Parliament, Government or Ministry
• Member of the Parliament
• Member on the Supreme Court, the Constitutional Court or any other judicial authority, whose decisions are not subject to further appeal
• Mayor of the municipality, director of the municipal administration
• Member of the management body of the national supreme audit and control institution, the chairperson, deputy chairperson or a member of the board of the central bank
• Ambassador, chargés d’affaire, Chief of Defence of the Republic of Lithuania, commanders of the armed forces and units, Chief of the Defence Staff or high-ranking officer in the armed forces of foreign country
• Member of the management or supervisory body of a state enterprise, public company, private company all or part of shares of which awarding more than ½ of all votes in the general meeting of shareholders of these companies are held by the State by right of ownership
• Member of the management or supervisory body of a municipal enterprise, public company, private company all or part of shares of which awarding more than ½ of all votes in the general meeting of shareholders of these companies are held by the State by right of ownership and which are considered to be large enterprises within the meaning of the Law of the Republic of Lithuania on Financial Reporting by Undertakings
• Head, deputy head, member of the administrative, management or supervisory body of international intergovernmental organisation
• Leader, deputy leader, member of the administrative, management body of the political party
Please note that if you are a family member or immediate helper of a politically exposed person, you must supply the required information about this politically exposed person.
International Sanctions are restrictive non-military measures put in place in order to preserve international peace and security, as well as respect for human rights.
They are imposed by the United Nations (UN), the European Union (EU) or by individual countries (e.g. the United States (U.S.), the United Kingdom (UK)). International Sanctions are imposed against entire states, as well as natural persons and legal entities, who violate human rights, commit religious, ethnical, territorial conflicts, support terrorism, violate other international norms and principles.
The purpose of International Sanctions is to influence a change of behaviour, to stop prohibited activities or to restrain the sanctioned person. International Sanctions take various forms based on their purpose (e.g. to prevent armed conflict, counter terrorism). They can be individual (e.g. travel ban, asset freeze), target goods and services (e.g. arms embargoes or proliferation-related goods, dual-use goods), can be focused on core economic sectors (e.g. oil or financial sectors) or be comprehensive targeting entire country (e.g. North Korea).
PAY BY B UAB COMPANY REGISTERED AT GEDIMINO PR. 20, VILNIUS, LT-01103, LITHUANIA.
PAY BY B UAB IS AUTHORISED AND REGULATED BY THE BANK OF LITHUANIA (BOL) AS A PAYMENT INSTITUTION (AUTHORIZATION CODE: LB002160).
COMPANY NUMBER 305736742.
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