Merchant Account Underwriting Tools

Acquirers face numerous risks from both the merchants they serve and their merchants’ customers

Research Report By Mercator Advisory Group
David Fish, Senior Analyst in Mercator Advisory Group’s Credit Advisory Service and principal analyst on the report, comments,” It’s every acquirer’s worst nightmare: the Fraud Merchant. Especially when the fraudsters are targeting any one given acquirer in an organized manner, for whatever reason – poor and rushed underwriting, lax risk monitoring, outdated detection systems – the losses can quickly stack up, taking months for the targeted acquirer to recover optimal profitability. Small ISOs are often dependent on their processors for underwriting and risk monitoring. Large acquiring operations are also vulnerable to these types of attacks and loss budgets can become quickly depleted if fraud rings are extremely active, since fraud detection and loss prevention are only two aspects of one of the several goals of acquirer risk management.”

Members of Mercator Advisory Group have access to this report as well as the upcoming research for the year ahead, presentations, analyst access and other membership benefits.”

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