Merchant Account Underwriting Tools

Monthly Archives: July 2014

Continuing Fallout Affects Processors’ Unwise Decisions

Operation Choke Point may be gone but even without the “Operation” processors will still be liable for the lack of due diligence. This sad saga began in 2009. FTC-seal

“Plaintiff, Federal Trade Commission (“FTC”) notifies the Court that this matter (  FTC VS Cardflex and Blaze Processing) is related to FTC v. Jeremy Johnson, 10-CV-2203-RLH (GWF).

At issue in FTC v. CardFlex is whether the Defendants’ conduct in processing credit card payments for the defendants in FTC v. Jeremy Johnson (“iWorks”) was unfair under Section 5(a) of the FTC Act, 15 U.S.C. §45(a).

As such, the factual and legal issues in FTC v. CardFlex and FTC v. Jeremy Johnson overlap considerably. The shared factual issues concern the period between June 2009 and June 2010, the time span in which the Defendants in FTC v. CardFlex provided payment processing services to iWorks.”


Choke No More?

“A Federal Deposit Insurance Corp. advisory warning banks to be vigilant about processing payments for fraudulent merchants has been revised after an outcry by Republican lawmakers that it targeted legitimate businesses.” According to the FDIC on July 28, 2014 it eliminated from the advisory a list of examples of risky merchant categories that “led toRead More

Merchant Fraudsters and Chargebacks

Scammers will make  “unbelievable” offers but many consumers will believe they are valid. Historically these supposed panaceas are for weight loss, time share resale, miracle cures, business directory listings, immigration help, work at home offers, multi-level marketing, job placement, wealth building, lower interest rates, hair growth, government grants, business opportunities, and anything that’s “Free.” ConsumersRead More