Merchant Account Underwriting Tools

Monthly Archives: September 2013

A common Ruse We See in Our Pre Underwriting Process

The applicant, often female, is in their mid twenties and as such has little credit or business history.The business is recently formed and is often a higher risk product. Our data indicates that they have been associated with some entirely different type of business, if any at all. i.e beauty salon, cosmetic sales, personal trainer,etc. People we identify as possible associates of the applicant are older and their names often connect with high risk products or services and even past chargeback events. There is hesitance on the part of the applicant to define what, if any, business they were in previously and what led them into this particular endeavor..
This signals to us that the applicant is “fronting” for someone who can’t get a merchant account for various reasons and results in our digging deeper to identify those reasons.

Be diligent in looking for signs that “straw men” (and women) are setting you up.

What Have We Been Saying Lately About Deception?

It’s not just Flybyknight Ecommerce Services boarding male enhancement merchants. (“Not that there’s anything wrong with that” – Jerry). Its J P Morgan selling “identity Theft Protection” using allegedly “unfair and deceptive practices sales tactics to improperly pitch similar so-called products.””The most costly cases for JPMorgan center on concerns that the bank duped its creditRead More

How Will the FTC Decide Which Processors to Target?

Or will it be like shooting fish in a barrel? With hundreds of ISO s offering to board any type of merchant, knowing that their products have little or no value and by nature must be sold deceptively, the FTC can throw a dart in the dark and likely hit a culpable mark. It won’tRead More

Are You Familiar with the TSR?

That’s the FTC s Telemarketing Sales Rule, and you best study up on it. Some of the merchants most likely to be targeted for sanctions are debt relief, credit card rate reduction, collection agencies, payday loans, and medical discount cards for seniors. Also, merchants who deceptively initiate recurring monthly billings without a clear notice ofRead More

What Is Your Applicant’s Address?

Is it a UPS Store? Is it a Regus virtual Office? Is it an Earth Class Mail Forwarding service? Is the phone a United World Telecom CallMe800 number? More frequently processors are finding that shell companies are being set up to obtain merchant accounts for fraudulent transactions. Adele Services, Ideal Financial Solutions, and I WorksRead More

The Arrival of Transaction Trends is Always Enlightening

More so to me this month because of the John Manasso’s article on a subject I’ve been blogging about. Weighing in on the same topic is Jason Oxman, ETA CEO in an American Banker article. An excerpt from his article reinforces my warnings: “The cause for concern is that the FTC has beenRead More

Are You Familiar With The FDCPA?

As a merchant account processor perhaps you should be if you are considering debt collectors as potential merchant accounts. The Fair Debt Collections Practices Act is the basis for the FTC’s continuing crackdown on scams that target consumers in financial distress. As of last month, a long running scam called Asset & Capital Management GroupRead More