‘Approved’
Central Bank of
the Republic of Azerbaijan
Resolution № 25/3
18 December 2013

Regulations on payment statistics reporting

1. General provisions

1.1. These Regulations have been developed in accordance with Article 63 of the Law of the Republic of Azerbaijan on the Central Bank of the Republic of Azerbaijan and Article 46.1 of the Law of the Republic of Azerbaijan on Banks and regulate compilation and submission of payment statistics reporting.
1.2. Payment statistics reporting is defined as data on operations conducted by payment cards issued by banks, local branches of foreign banks, service centers involved in processing and the national operator of postal communication (hereinafter – statistic units), the number and structure of payment cards, operations on customer accounts, the number, regional distribution and technical condition of payment equipment, operations conducted with payment cards issued by other financial instituions in the payment service network (PSN), operations via money transfer systems and payment card frauds.
1.3. The goal in compiling the report is to provide the Central Bank of the Republic of Azerbaijan (hereinafter – the Central Bank) with full and comprehensive information on cashless circulation to organize, coordinate and regulate payment systems.

2. Definitions

2.0. The definitions used herein shall have the following meanings:
2.0.1. payment equipment – ATMs, POS-terminals, payment terminals;
2.0.2. payment service network (PSN) – ATMs, POS-terminals, payment terminals, e-trade;
2.0.3. payment terminal – equipment supplied with relevant software that allows payers to make payments in cash or via payment cards and provides them with a confirmation of payment, excluding ATMs, and POS-terminals;
2.0.4. PC banking – use of statistic unit’s banking services by a user on a dedicated communication channel with relevant software installed or over Internet (www – World Wide Web);
2.0.5. Internet banking – use of statistic unit’s banking services by user without relevant software installed over Internet;
2.0.6. e-trade – payment for cost of goods, works or services using information systems;
2.0.7. mobile banking – use of statistic unit’s banking services by a user installing or not installing appropriate software via mobile devices (mobile phones, tablets etc.) over mobile communication channels (GSM, CDMA, 3G, HSPA+, WiFi, LTE etc.);
2.0.8. money transfer systems – a system, allowing individuals to transfer money funds within or out of the country without opening a bank account or to receive money funds transferred to their favor;
2.0.9. payment instruction – cashless settlement form, where an issuer bank makes payment in favor of funds receiver under a payment instruction presented by him/her on the basis of previously issued instruction by a payer;
2.0.10. fraudulent operations with lost/stolen cards – fraudulent case resulting from loss or theft of the available card, as well as use of a payment card without card owner’s agreement or authorization;
2.0.11. Never Received – fraudulent case occurred prior to delivery of a payment card to a card owner;
2.0.12. Counterfeit/Skimming – fraudulent case that occurred as a result of use of payment cards that were counterfeited through skimming/change of magnet tape and data on the card or were illegally developed. Skimming is a form of magnetic tape forgery by duplicating data on a real card’s magnetic tape;
2.0.13. CNP frauds – fraudulent case that occurred due to use of payment card data without card owner’s authorization (without presentation of a payment card physically) over a phone, e-mail, Internet etc.;
2.0.14. other fraudulent operations – fraudulent case not covered by the above. For instance, frauds resulting from use of an available customer account without card owner’s authorization by gaining unauthorized access to his/her account or card imprinting in economic agents with later use of data etc.;
2.0.15. contactless payment card – card with radio-frequency identification allowing to conduct contactless payments;
2.0.16. contactless payment – payment made by tapping a contactless card near a POS-terminal by card user.

3. Content and compiling of the report

3.1. A payment statistic report (hereinafter – PS) consists of 12 statistic forms (Pro-Form PS-12 only relates to service centers involved in processing):
3.1.1. ‘Statistic report on debit and credit cards issued by a statistic unit’ (Pro-Form PS-1 – Annex # 1) includes data on the number and amount of operations using debit and credit cards issued by a statistic unit via PSN over the reported period and prior to the reported year both domestically and internationally.
3.1.1.1. Data on the number and amount of operations using debit and credit cards issued by a statistic unit via PSN over the reported period and prior to the reported year both domestically and internationally in the ‘Operations with debit and credit cards issued by a statistic unit’ section are based upon related data from the ‘Operations with debit cards issued by a statistic unit’ and ‘Operations with credit cards issued by a statistic unit’ sections.
3.1.1.2. ‘Operations with debit cards issued by a statistic unit’ includes operations with statistic unit issued debit cards.
3.1.1.3. ‘Operations with credit cards issued by a statistic unit’ section includes operations with statistic unit issued credit cards.
3.1.1.4. ‘Total operations’ include operations via payment equipment owned both by statistic unit and other financial institutions.
3.1.1.5. ‘Operations in statistic unit owned PSN’ only include operations in statistic unit owned PSN.
3.1.1.6. The number and amount of overseas operations include respectively total number and amount of cash withdrawal from ATMs and POS-terminals, payments made through payment equipment, and payment for cost of goods, works or services via e-trade.
3.1.1.7. The number and amount of domestic operations include respectively total number and amount of operations conducted via PSN.
3.1.1.8. Operations on ATMs and POS-terminals are classified as cash (withdrawals) and cashless (payments).
3.1.1.9. All cashless payments via POS-terminals across the country are recorded as cashless payment operations in manat. Foreign currency operations in retail trade and catering are recorded on a foreign currency row in manat equivalent.
3.1.2. ‘Statistic report on the number of statistic unit owned payment equipment’ (Pro-Forma PS-2 – Annex #2) includes the number of payment equipment, owned by a statistic unit, installed and written off as of the period start, over the period and period end respectively over the period and from the beginning of the reported period.
3.1.3. ‘Regional distribution of payment equipment owned by a statistic unit’ (Pro-Form PS-3 – Annex #3) includes the number of installed and put into operation ATMs (including cash-in) and POS-terminals (including those installed in retail trade, catering and other service entities), and payment terminals owned by a statistic unit across relevant economic regions and cities of location.
3.1.4. ‘Statistic report on the number of payment cards in circulation’ (Pro-Form PS-4 – Annex #4) includes total number of payment cards in circulation, the number of cards issued to and withdrawn from circulation, inactive over the reported period, total number of cards as of end-period in the reported month section as of the start of the reported period, while the ‘from the beginning of the reported year’ section includes total number of payment cards in circulation, and the number of payment cards issued to and withdrawn from circulation.
3.1.5. ‘Statistic report on the structure of statistic unit issued payment cards in circulation’ (Pro-Form PS-5 – Annex#5) includes the purpose of payment cards in circulation over the period and from the beginning of the reported year (debit and credit cards), the number of payment cards used in payment systems depending on the type and card owners, the number and amount of operations.
3.1.5.1. Debit cards in circulation are classified as follows in terms of purpose/designation:
3.1.5.1.1. social cards:
3.1.5.1.1.1. pension cards – cards used for old-age labor pension, disability pension and family pension;
3.1.5.1.1.2. social benefit card – card used to deliver monthly (lifetime assistance to public servants, allowance by age, disability allowance, allowance to children under 18 with limited health capabilities, allowance for loss of head of family, home care allowance for children under 3 years of age, allowance to low-income families with children under 1 year of age etc.) and one-off (allowance for persons damaged from radiation accident for annual treatment, childbirth allowance, funeral allowance etc.) money funds, as well as targeted social aid, allowances to internally displaced persons to render social assistance to persons of particular categories as specified in the Law of the Republic of Azerbaijan on Social Allowances;
3.1.5.1.1.3. tuition card – card used to deliver target scholarship and scholarship set for students on bachelor and master degrees, specialized secondary and vocational schools;
3.1.5.1.1.4. other social cards – debit cards for agricultural subsidies and not related to the above;
3.1.5.1.2. salary cards:
3.1.5.1.2.1. on public institutions, state owned enterprises and organizations;
3.1.5.1.2.2. non-governmental enterprises and organizations;
3.1.5.1.3. other debit cards – other debit cards not related to the above.
3.1.6. ‘Statistic report on statistic unit’s customer accounts’ (Pro-Form PS-6 – Annex# 6) includes the number of accounts of statistic unit’s customers by types of accounts, legal status and term, the number of transfers from current accounts in terms of legal status and type, as well as amount of transfers from current accounts by types.
3.1.6.1. ‘Number of customers in terms of legal status’ is classified in terms of individuals, including unincorporated individual entrepreneurs, and legal entities.
3.1.6.2. ‘Number of customer accounts by types of accounts’ includes the number of deposit, credit and current customer accounts.
3.1.6.3. ‘Number of deposit accounts in terms of legal status’ classifies the number of deposit accounts in terms of individuals, including unincorporated individual entrepreneurs, and legal entities.
3.1.6.4. ‘Number of deposit accounts by terms’ classifies deposit accounts as term and demand deposits.
3.1.6.5. ‘Number of credit accounts in terms of legal status’ classifies the number of credit in terms of individuals, including unincorporated individual entrepreneurs, and legal entities.
3.1.6.6. ‘Number of credit accounts by terms’ classifies credit accounts as long and short term (up to 360 days).
3.1.6.7. ‘Number of current accounts in terms of legal status’ classifies the number of current accounts in terms of individuals, including unincorporated individual entrepreneurs, and legal entities.
3.1.6.8. ‘Number of transfers from current accounts in terms of legal status’ classifies the number of transfers from current accounts in terms of individuals, including unincorporated individual entrepreneurs, and legal entities.
3.1.6.9. ‘Number of transfers from current accounts in terms of types’ classifies the number of transfers from current accounts in terms of transfers in paper carriers, via e-network and devices (Internet banking, mobile banking, PC banking and others) and the type of payment instructions.
3.1.6.10. ‘Amount of transfers from current accounts in terms of legal status’ classifies the amount of transfers from current accounts in terms of individuals, including unincorporated individual entrepreneurs, and legal entities.
3.1.6.11. ‘Amount of transfers from current accounts in terms of types’ classifies amount of transfers from current accounts in terms of transfers in paper carriers, via e-network and devices (Internet banking, mobile banking, PC banking and others) and the type of payment instructions.
3.1.6.12. ‘Statistic report on statistic unit’s customer accounts’ records the number of accounts opened by, customers attracted by, and the number and amount of operations by a statistic unit over a reported month in the ‘reported month’ column, while ‘from the beginning of the reported year’ column records the actual number of customers and accounts, the number and amount of executed operations with increasing total as of the end-period.
3.1.7. The ‘Statistic report on operations in statistic unit owned PSN with payment cards issued by other financial institutions’ (Pro-Form PS-7 – Annex# 7) classifies the number and amount of operations with payment cards issued by resident (excluding payment cards issued by a statistic unit) and non-resident financial institutions in the statistic unit owned PSN in terms of payment types (cash withdrawals and payments) and payment card categories (Visa, MasterCard, American Express and other financial payment systems).
3.1.8. ‘Statistic report on operations via statistic unit used money transfer systems’ (Pro-Form PS-8 – Annex# 8) records the number and amount of inflows to and outflows from a statistic unit in national and foreign currencies (manat equivalent of foreign currency operations) via local and foreign money transfer systems for the reported period and from the beginning of the reported year. If money is transferred to and from a statistic unit not covered in the list of local and foreign money transfer systems included to the report, information is delivered by a statistic unit to the Central Bank being approved by a signature of a statistic unit’s CEO and a
stamp with the name of the money transfer system and the number and amount of that inflow and outflow transfers on the day the related report is delivered.
3.1.9. ‘Statistic report on technical condition of ATMs’ (Pro-Form PS-9 – Annex# 9) records total number of statistic unit’s ATMs, the number of inoperable ATMs and reasons (lack of cash in ATM, problems in communication and power supply, ATM breakdown, processing center’s technical issues, repairs in the place of location and others), the region and city of location. If it is recorded in the Pro-Form that ATMs are inoperable due to other reasons, information on clear explanation of the reasons is delivered by a statistic unit to the Central Bank being approved by the signature of statistic unit’s CEO and a stamp on the day the related report is delivered.
3.1.10. ‘Statistic report on operations on statistic unit owned payment terminals’ (Pro-Form PS-10 – Annex#10) includes data on the number and amount of operations through statistic unit owned payment terminals in terms of cash and cashless payments over the reported period and from the beginning of the reported year.
3.1.11. ‘Statistic report on payment card frauds’ (Pro-Form PS-11 – Annex# 11) records fraudulent operations with payment cards issued by a statistic unit both domestically and internationally, as well as with payment cards owned by non-resident organizations in statistic unit’s domestic PSN as frauds and across payment card categories.
3.1.11.1. Payment card frauds include the following categories of frauds:
3.1.11.1.1. Lost/Stolen Cards;
3.1.11.1.2. Never Received;
3.1.11.1.3. Counterfeit/Skimming;
3.1.11.1.4. CNP;
3.1.11.1.5. other frauds.
3.1.11.2. The number and amount of operations are classified as quarterly and from the beginning of the reported year.
3.1.11.3. Frauds should be recorded not on the date of occurrence, but on the date the fraudulent operation has been confirmed in the Pro-Form. For instance, if the fact that the operation of 5 January was fraudulent is confirmed by the end of the quarter, the operation should relate to the first quarter, if confirmed after the first quarter, to the relevant quarter.
3.1.12. ‘Statistic report on the financial institution served by a service center involved in processing activity’ (Pro-Form PS-12 – Annex# 12) records data on operations with payment cards issued by a financial institution served by the service center involved in processing activity, the structure of payment cards in circulation, operations with payment cards issued by other financial institutions in PSN owned by a financial institution, and the number of payment equipment. This Pro-Form is developed per serviced financial institution.
3.1.12.1. ‘Operations with cards issued by a financial institution’ includes data on the number and amount of domestic and international operations over PSN using payment cards issued by a financial institution served by the service center involved in processing activity over the reported period and from the beginning of the year.
3.1.12.2. In the Pro-Form’s ‘Operations with cards issued by a other financial institutions over PSN owned by a financial institution’ section the number and amount of operations with payment cards issued by other resident and non-resident financial institutions over PSN owned by a financial institution serviced by a service center involved in processing activity are classified in terms of types of payments (cash withdrawals and payments) and payment card categories (Visa, MasterCard, American Express and other international payment systems).
3.1.12.3. The Pro-Form’s ‘Number of payment equipment owned by a financial institution’ section includes the number of payment equipment owned by a financial institution serviced by a service center involved in processing activity.
3.1.12.4. The Pro-Form’s ‘Structure of financial institution issued payment cards in circulation’ section includes the number of payment cards used in payment systems depending on payment card categories in circulation owned by a financial institution serviced by a service center involved in processing activity as of the end-reported period.
3.2. Foreign currency operations are recorded in manat equivalent at an official exchange rate of the Central Bank as of the endperiod in all reports.
3.3. Pro-Forms PS-1 and PS-5, and Pro-Form PS-12 ‘Operations with financial institution issued payment cards’ include the number and amount of card payments (excluding the number and amount of debit of funds to a payment card) and cash withdrawals.

4. Submission of the report

4.1. Pro-Forms PS-1; PS-2; PS-3; PS-4; PS-5; PS-6; PS-7; PS-8; PS-9; PS-10; PS-12 of payment statistics reporting should be submitted to the Central Bank being consolidated by a statistic unit across all units on a monthly basis, while PS-11 on a quarterly basis electronically within 10 (ten) days following the reported period. In the event of no operation, this column is left empty in the pro-form.
4.2. The report is approved with electronic signatures of statistic unit’s head, member, chief accountant or his/her substitute, or the head of the structural unit responsible for delivery of the report.