Payment monitoring in Ukraine: what it is and how it helps increase profits

The number of cashless transactions in Ukraine is growing every year. Along with the development of fintech, risks are also growing: fraudulent schemes are becoming more sophisticated, and payment transparency requirements are becoming stricter. In such conditions, transaction monitoring is no longer just a regulatory requirement. It is a strategic tool for businesses, allowing them to reduce costs, minimize risks, and increase profitability.

⬇️ Below, we will look at how the payment monitoring system works in Ukraine, what regulations govern this process, and how Tranzzo builds its own analytics to improve the efficiency of financial transactions.

Payment monitoring is the systematic analysis of financial transactions to identify suspicious transactions, comply with legal requirements, and reduce risks. For businesses, it is a tool that not only reduces the likelihood of fraud but also allows them to respond promptly to violations in payment processes.

In many industries (from e-commerce to microfinance), high-quality monitoring provides additional profitability thanks to saved funds, better payment conversion, and reduced transaction service costs.

The Ukrainian payment market is regulated by a number of documents that directly oblige companies to implement payment monitoring:

• The Law of Ukraine "On Payment Services" (effective August 1, 2022) defines for the first time at the legislative level the categories of payment service providers, requirements for data transparency, and risk-based monitoring.
• The Law "On Preventing and Combating the Legalization of Proceeds from Crime" (2020, as amended) requires financial institutions and primary financial monitoring entities to analyze all unusual transactions.

Payment monitoring is not only about security, but also about efficiency. Businesses receive direct financial benefits through:

• Fewer chargebacks. For example, in the digital goods sector, refunds after successful transactions are one of the main sources of losses. Automated monitoring detects potentially fraudulent payments before funds are debited.
• Higher payment conversion rates. Thanks to precise filter settings, businesses do not block "good" transactions and do not lose solvent customers.
• Transparent analytics for financial planning. Clear transaction data allows you to more accurately predict cash flows and plan the workload for your support team, accounts, or connected banks.

The Tranzzo team, which has been operating in the payment market since 2017, has implemented one of the most flexible monitoring systems in Ukraine:

• 200+ parameters for risk assessment – including geolocation, transaction frequency, device type, IP address, and behavioral patterns.
• Live analysis of each transaction – all payments go through a rule-based engine, as well as an AI module that learns from previous fraud cases.
• Team monitoring – a separate risk analysis department at Tranzzo checks not only suspicious transactions but also general trends in merchant accounts on a daily basis. This helps prevent systemic risks.

Legislation requires businesses to monitor payments, but companies that approach this not formally, but systematically, gain a competitive advantage. They better protect their customers, reduce losses, and plan cash flows more accurately. Tranzzo is an example of a payment provider that not only meets the requirements of the National Bank of Ukraine but also raises the standard of monitoring in the industry. This allows the company's partners to work more stably, more securely, and, importantly, more profitably.