Merchant Account Underwriting Tools

Monthly Archives: August 2013

SNAKE OIL

SNAKE OIL

Sometimes your merchant applicants are Snake Oil Salesmen. “Snake oil” is synonymous with quackery, the phoniest of phony. A “snake oil salesman” promises you the world, takes your money, and is long gone by the time you realize the product in your hands is completely worthless.

GET OUT OF DEBT NOW!! OR GROW HAIR OR WORK AT HOME OR CLEANSE YOUR COLON OR . . . . . .

SNAKE OIL

The salesmen of an older time soon moved their wagons on to the next town square to repeat the “medicine show” and there were no ensuing chargebacks to worry about.

As underwriters how do you view get rich tapes and seminars; debt consolidation; buyers discount clubs; government grants; travel certificates; nutritionals; weight loss programs; medical supplements; negative options, multi-level marketing; continuity; pay day loans, and other snake oil?

Do you think your transaction monitoring and reserves will always protect you after today’s Snake Oil Salesmen move on? It’s your business that is at stake.

ARMS has several levels of solutions between $19.95 and $85.00 to help you evaluate high risk merchants by knowing whether or not The Sheriff is likely to close their wagon.

Initial Merchant Due Diligence

Some relatively new FTC guidelines (March 2013) clarify the required disclosures that on-line merchants must follow. http://www.ftc.gov/opa/2013/03/dotcom.shtm. It is incumbent on the acquirer to know how, as well as what, its merchant is marketing. http://www.acquirerrisk.com/blog/?p=563 “The FTC’s use of the broader “unfair or deceptive acts” prohibition emphasizes that the FTC has the card processing businessRead More

I Said I Wouldn’t Beat a Dead Horse

back in December,2010. But this one isn’t dead just yet. http://www.acquirerrisk.com/blog/?p=371. Jeremy Johnson has recently alleged that current Utah Attorney General John Swallow, under investigation for various misdeeds, referred him to a lobbyist, Richard Rawle of RMR consulting, for $250,000 to arrange a deal with “the guy” for U.S. Senate Majority Leader, Harry Reid, D-NVRead More