prepared for
Magnetiq Bank
One centralised AI brain protecting the acquiring book Magnetiq Bank is building across the Baltics and the EU — and ready to deploy under your label to the PayFacs you serve.
You are growing in two directions at once — acquiring directly and sponsoring PayFacs that bring their own merchant portfolios onto your BIN. Each direction carries a different risk profile, and your supervisors expect both to be controlled to the same standard.
PayFac sub-merchants come onboarded by someone else. You inherit the chargeback exposure, the scheme fines, and the AML accountability — without ever seeing the KYC file.
Latvian FCMC and ECB-level scrutiny on AML, plus the scheme audits on fraud. Every control needs to be explainable, evidenced, and reproducible — not a black box.
Mule networks, first-party fraud and laundering typologies are mutating faster than any internal rules team can write. The cost of maintenance keeps climbing while detection slips.
You need the same intelligence layer for your own acquiring book and for the PayFacs you sponsor — so risk, ops and compliance work off one truth, not three reports.
Rules systems (Gen 1) and bespoke ML (Gen 2) are siloed by design. Fraudio is Generation 3: every acquirer, bank and PayFac on the platform feeds one centralised, patent-pending model. Magnetiq Bank plugs into a brain trained on billions of transactions on day one — and every transaction you process makes it stronger for you.
Protect the BIN. Score every merchant — your own and your sponsored PayFacs' — for collusive fraud, bust-out and transaction laundering, in real time and from day one.
Sub-100ms scoring on the authorisation flow. Network-effect intelligence stops first-party and cross-border card fraud the moment it appears anywhere on the platform.
Behavioural AI that flags mule activity, structuring and trade-based laundering across the merchant base — with explainable evidence packs your audit team can hand to the regulator.
You are not just buying a fraud engine — you are joining a network. The same model that protects Magnetiq's direct book becomes a value-add product you can offer to every PayFac you sponsor, with no integration cost to them.
Centralised learning across billions of transactions means Magnetiq benefits from fraud patterns seen on other acquirers before they ever hit your BIN.
Visa and Mastercard's own tools only see their rails. Fraudio sees the full picture across schemes, geographies and PayFac portfolios.
Independently benchmarked uplift versus the incumbents Magnetiq would otherwise be asked to evaluate.
Pay-per-use SaaS. Plug into the API, go live in days, scale automatically as your PayFacs onboard their merchants. No rip-and-replace for your stack.
When the regulator walks in, the question is never just "did you catch it" — it is "can you prove how you caught it." Fraudio is built so the answer is always yes, and our team sits beside our customers when the auditors arrive.
During Vialet's recent AML audit by the Bank of Lithuania, Fraudio worked directly alongside the Vialet team — walking the supervisors through the model, the alerts and the evidence trail.
That is what "we support our customers in audits" means in practice: not a line in the contract, but our team at the table when it matters.
Vialet is a Lithuanian EMI offering EUR IBAN accounts, cards and cross-border payments across the EU — and runs on Fraudio.
Three documents the risk, compliance and product teams at Magnetiq will want to review before the next conversation.
How the centralised AI scores collusive merchants, bust-out and transaction laundering across an acquirer's BIN — the product most relevant to Magnetiq's PayFac sponsorship model.
Read the overview →The full picture on how Fraudio supports AML decisioning, evidence packs, and audit walk-throughs — including the model governance regulators expect.
Open the AML deck →How an EU EMI runs Fraudio across its book — and how our team sat with them through the Bank of Lithuania AML audit.
vialet.eu →