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.
