Merchant Account Underwriting Tools

Monthly Archives: February 2011


Consumer loss means acquirer loss. The Underwriters Creed.

The question here: What should the underwriters have seen?

February 14, 2011

Consumer protection lawsuit filed against Internet-based electronics store

HARRISBURG – A consumer protection lawsuit was filed today against a Philadelphia based Internet electronics store that allegedly failed to deliver products to consumers and created new websites and company names to confuse consumers or to avoid negative feedback.

Acting Attorney General Bill Ryan said the lawsuit was filed against Zoommania, LLC, Pro Digital Cameras, Inc., and owners Andrew Schwartz and Paul Nimerozky. The company storefront was located 21 South 12th St, 2nd Floor, Philadelphia. However, a majority of the business was conducted from the owners’ homes in Merion Station and Huntingdon Valley, Montgomery County.

According to the lawsuit, the defendants operated numerous websites under different names, locations, telephone numbers and fax numbers, but all were actually the same company.

Ryan said the stores allegedly created new websites with different names and locations after receiving negative feedback from consumers. By creating seemingly new companies, the defendants were allegedly able to trick consumers into thinking they were dealing with a different company.

Some of the business names included Zoommania, Pro Digital Cameras, Fotospirit, Iprodigital, Ewaydigital and Digiemporio. None of these names were registered with the Pennsylvania Department of State as corporations or fictitious names, as required by law.

The lawsuit alleges that the stores listed all inventory as being “in-stock” or “available,” but within 48 hours of purchasing a product, consumers would receive a phone call or email stating that the item was out-of-stock.

Ryan said the stores then informed consumers that they could purchase an additional “kit” that would make them eligible to receive their goods in a timely manner, but if they refused, there would be no definite time when the goods would be delivered, if at all.

The lawsuit seeks restitution for consumers and $1,000 for each violation of the Consumer Protection Law, $3,000 for violations when involving a consumer aged 60 or older. The lawsuit also seeks litigation and investigation costs.

Consumers who believe they may have purchased items from any of these companies is encouraged to filed a complaint with the Attorney General’s Bureau of Consumer Protection by calling 1-800-441-2555 or filing an online complaint at

The lawsuit was filed today in the Philadelphia County Court of Common Pleas by Deputy Attorney General Sarah A. E. Frasch of the Attorney General’s Bureau of Consumer Protection.

This will even put Underwriters to sleep

This is really dull. Stay tuned for some blood and guts of merchant fraud. Excerpt “The risk of fraud is especially serious if a merchant takes orders by mail, telephone, or over the Internet. In such card-not-present situations, the Truth in Lending Act frees cardholders from liability-they are not responsible for even the first $50Read More

Visa fraud alert to banks and payment processors

That alert, in May 2010, was focusing renewed attention on a longstanding need for banks to tighten up the standards for authorizing merchants who accept credit and debit card payments. Avivah Litan, an analyst with Gartner Inc. said that “the type of fraud Visa is warning about has been going on for several years. ItRead More

Acquirers face numerous risks from both the merchants they serve and their merchants’ customers

Research Report By Mercator Advisory Group David Fish, Senior Analyst in Mercator Advisory Group’s Credit Advisory Service and principal analyst on the report, comments,” It’s every acquirer’s worst nightmare: the Fraud Merchant. Especially when the fraudsters are targeting any one given acquirer in an organized manner, for whatever reason – poor and rushed underwriting, laxRead More

Want to get the FBI involved?

This will work every time: From: For Immediate Release February 10, 2011 FBI Los Angeles Seal Beach Woman Arrested for Impersonating FBI Agents by Altering Voice and Using Telephonic ‘Spoofing’ Technology A Seal Beach woman was arrested today for allegedly used “spoofing” technology to impersonate FBI agents in phone calls to business clients whoRead More

“A billion here, a billion there, pretty soon you’re talking about real money.” -Senator Everett Dirksen-

Senator Dirksen wasn’t talking about merchant fraud against processors. Actually, according to the Dirksen Center, there’s little evidence that he said it at all. Nevertheless, as we see merchant fraud against acquirers grow, we have to think “some real money” is going down the drain. And the people (read that as groups) who are walkingRead More

Fraudster to pay $2 Million…..should read

“CREDIT CARD PROCESSORS TO PAY $2 MILLION…” Thanks to the NJ AG and investigator Murat Botas, a complicated consumer fraud case has been concluded against Daryl T. Turner and his so called travel agencies. However, it is yet another signal to merchant underwriters, and credit card processors that consumer fraud means acquirer loss. Per theRead More