Merchant Account Underwriting Tools

Monthly Archives: April 2014

Personal Liability for a Processor’s Corporate Acts?

“The “Inc.” after a company’s name can provide certain legal protections, but let’s get one thing clear: It’s not a shield that corporate officers can hide behind to avoid personal liability for violations of the FTC Act. A decision by the U.S. Court of Appeals for the Fourth Circuit underscores that principle. If executives pondering an iffy business practice need further persuasion, how about an order affirming a $163 million personal judgment against the Vice President of a company sued for FTC violations?”

Something to consider further is “the individual had actual knowledge of the deceptive conduct, was recklessly indifferent to its deceptiveness, or had an awareness of a high probability of deceptiveness and intentionally avoided learning the truth.”

ARMS can help you Know Your Customer and what he’s up to.

The Merchant Processing Industry Has Diluted Underwriting Standards

Heated discussion is underway between the Payment Processing World and Bank Regulators. The headlines are focusing on the pros and cons of payday lending. The underlying theme really has more to do with the broader responsibility of acquirers to manage the risk that threatens their own financial stability. Lack of due diligence when doing businessRead More

After Arrest As a Fraud Merchant in 2012 Innovation was Necessary

Jim Murray opened a merchant account named Jones, Moore & Associates with Chase Paymentech in 2010 and processed approximately $650,000 in debit and credit transactions, utilizing cards connected to himself, relatives and associates. He was arrested on March 13, 2012 charged with Wire Fraud and Aggravated Identity Theft and subsequently released on bond with certainRead More

“Birds of A Feather”

Yesterday, March 31, the FTC filed a cease and desist order against: Ari Tietolman Marc Ferry Charles Borie Robert Barczai A few of their companies are First Consumers, LLC PowerPlay Industries, LLC Standard American Marketing Patient Assistnace Plus Legal Eye Trust One Services Landshark Holdings Madicom, Inc Fraud Watch Fraud Watch? Indeed! “Defendants make deceptiveRead More