Risks

Cryptopay uses screening tools that monitor illicit cryptocurrency addresses and tag addresses that interact with them. These tools inform us with a high degree of certainty if cryptocurrency transactions we process have been connected to (or originated from) illicit activities online (terrorist funding, ML, dark marketplace activities, trafficking, etc).

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Merchant Guidance v07102020.pdf

pdf

We take the data, received from these tools, very seriously, as it helps us to comply with all compliance procedures in accordance with AML standards in the context of payment processing. The purpose of monitoring these transactions/addresses is to avoid processing funds, associated with illicit addresses, as we do not wish to be involved with these funds, and neither do merchants.

A callback level attribute that we send to a merchant's server regarding all transaction-related events, dictates how close the transaction received is linked to the illicit addresses (e.g. was it sent directly from a 'bad' address, or there are a few hops in between).

We expect you to contact us at [e-mail] for further instructions in case you get a High-Risk payment.

Value	Description
low	No red flags
medium	No red flags but we recommend to look closely at a user whom the transaction relates to and inform your Fraud Prevention / Transaction Monitoring teams
high	Red flags. We highly recommend to restrict the user's account and immediately inform your Fraud Prevention / Transaction Monitoring teams

Invoice callback

{
  ...
    "transactions": [
      {
        "txid": "502e6de0c3b1d129974c55e6cd127fd548e4501ff8e8d9330ea9a30a83dbd16e",
        "risk": {
          "score": 0.0,
          "level": "low",
          "resource_name": "Bitstamp",
          "resource_category": "Exchange"
         }
      }
    ],
  ...
}

ChannelPayment callback

{
  ...
    "risk": {
      "score": 0.0,
      "level": "low",
      "resource_name": "Bitstamp",
      "resource_category": "Exchange"
    },
  ...
}

CoinWithdrawal callback

{
  ...
    "risk": {
      "score": 0.0,
      "level": "low",
      "resource_name": "Bitstamp",
      "resource_category": "Exchange"
    },
  ...
}

Related documentation:

Invoice statuses

Payment statuses

Customers