Merchant Account Underwriting Tools

Monthly Archives: July 2015


Where Are They Now?

Man-hidigIn Your Portfolio perhaps? Or trying to get in? Business names change easily. Individual names less easily. And zebras do change their stripes.

Yet over the years of our experience we see the same names applying for merchant accounts and ISO sponsors who have been connected to conduct that may have resulted in major chargeback losses to acquirers.

The principals will be looking for processing relationships again. Scammers who are in MATCH will frequently use associates listed in FTC filings or news articles but not in MATCH as straw men the next time around. Information about ISO s who have gone bad is often not widely shared.

Someone using the names that we follow have in the past come to the attention of regulators based on allegations that may or may not have been adjudicated or proven. Even if charges or sanctions were established as true, it does not mean that the businesses or individuals continue to involve themselves in the questioned activities or need any special underwriting review.

Someone using the names related to allegations of fraud that are given to us by others are made available to our connections only as a notification and without any indication from ARMS that the allegations are true.

Often individual and business names are appropriated fraudulently and have no connection to the legitimate entity.


Another Question About Acquirer Responsibility

Allstar Marketing has settled with the FTC for $8 million dollars for its false and deceptive marketing of products via its “buy-one-get-one-free” promotions and their “double the offer” for consumers, if they just paid “processing and handling fees.” While consumers were led to believe that they would then be getting two $19.95 products for “lessRead More

Few of Us Underwriters are Research Scientists

However, many of us can read. We can also evaluate what we read with a (more or less) analytical perspective.That’s why we make the big bucks! But then what? Take the example of Brain Research Labs and KeyView Labs (ProceraAVH) just sanctioned by the FTC for Deceptive Acts and False Advertising. Some acquirer is/was processingRead More

Old Scams Never Die. They don’t Even Fade Away

Lots of people swear by timeshares. Many others swear at their ownership of them; often purchased under duress and false claims.Savvy scamsters claim to have solid buyers for these  owners who are desperate to get out of their contract and solicit advance fees to facilitate the transaction. We underestimate the the naivete of consumers  byRead More

Selling Your Merchant Portfolio? There Could Be $16 Million In It For You

If you work it right. Ok, so this is a Pelican. Here’s a new angle (at least to me). “1. This case involves allegations of a Ponzi scheme that, along with two distinct but related Ponzi schemes, is the subject of a related civil injunctive action filed by the Commission against Joseph A. Nelson (“Nelson”)Read More

What To Expect From The CFPB?

Have some of the tasks previously handled by the FTC been handed off to the lesser regulated CFPB? It remains to be seen, but a recent decision by Director Richard Cordray regarding a mortgage lender action by the agency might signal a broader interpretation that merchant acquirers need to keep in mind. “Notably in thisRead More