Merchant Account Underwriting Tools

Monthly Archives: July 2013

In Case You Weren’t Paying Attention

The Senate yesterday confirmed Richard Cordray to head the Consumer Financial Protection Bureau (CFPB). Think FTC with a more specific agenda. The CFPB is not entirely new, having been created under Dodd-Frank.

“The purpose of the CFPB is to promote fairness and transparency for mortgages, credit cards, and other consumer financial products and services. The CFPB will set and enforce clear, consistent rules that allow banks and other consumer financial services providers to compete on a level playing field and that let consumers see clearly the costs and features of products and services.”

They have already been active and with the official appointment of leadership may feel a stronger mandate to proceed in their mission.

Here’s something that may or may not apply to the responsibility of acquirers to know their ISO and merchant’s practices lest they become defendants along with them:

I would be most concerned about merchants offering debt collection, interest rate reduction, mortgage debt relief, credit repair, payday loans, debt consolidation.

Our due diligence process can help you know your ISO and your merchant better.

Could you become a defendant along with your merchant?

As underwriters we are tasked with evaluating the risk of loss, whether caused by our merchant or by the consumer. In evaluating the service or product that we are standing behind financially, we want to consider if the merchant counted on “the inattention, unwarranted confidence, exuberance, and a desire for immediate gratification, which make themRead More

A Waste of Time?

With today’s technology why don’t we just board every merchant who applies and then put limits on their daily, weekly and monthly dollar volume? The same with the amount and number of their transactions. We’re monitoring transactions and batches in real time, as well as chargebacks. We have a reserve to grab. What do weRead More