By Melody Lashmar – There is a continued surge of activity within the banking industry in the name of UDAP. This surge of activity shows that the bank regulators have also been tasked with not only evaluating whether the bank they are examining is being neither unfair nor deceptive when providing services to their consumers, but these examiners have been mandated with protecting all consumers. This means that any activity of any merchant at that bank is under scrutiny by those examiners and the onus is on the bank to defend your business practices as being neither unfair nor deceptive. It seems that the measure they begin with is, ‘Has there ever been a chargeback or unauthorized transaction?’ To examiners, a chargeback is an indication that a consumer has been harmed and if there is more than one chargeback then this is viewed as a pattern and creating significant risk to a bank. Continue reading
By Melody Lashmar – On October 27, 2011 at the Electronic Transaction Authority’s (ETA) Compliance Day in Chicago, a Federal Trade Commission (FTC) official told attendees that the government has formed a task force to monitor third-party payment-services providers. The stated goal is to prevent fraudulent merchants from obtaining merchant accounts and to shut down such merchants as quickly as possible if they defraud consumers. Continue reading
November is finally here and what an exciting month we have in store!
First, the US Presidential Election takes place on November 6th! As a big fan of American history and politics in general, I’ll definitely be getting out there to the polls on Tuesday morning. Also, a bunch of celebrities on TV told me it’s important to vote, so I wouldn’t want to let them down.
Perhaps even more exciting than the Election is that we get to turn the clocks back 1 hour on November 4th! This means an extra hour of the weekend to lay around and watch sports. Awesome! Oh, who am I kidding? What it really means is that I’ll get to spend an extra hour at Target. Somehow, inexplicably, my entire weekend always gets gobbled up by Target.
And speaking of gobbling, Turkey Day – aka Thanksgiving – is on the 22nd! Another great American holiday where we celebrate…eating? I’m sure there’s a wonderful story behind the real meaning of Thanksgiving, but I just see it as a perfect opportunity to guiltlessly consume as much food and beverage as I can on a Thursday afternoon.
I’m only kidding, of course. Thanksgiving is, above all, a time to reflect on what we are most thankful for in life. For me, that’s family, friends, my job, and the fact that I no longer share an office with Hrag.
Also, in the spirit of Thanksgiving, we’re giving you the opportunity to take a quick survey on our website. We want to hear from you about what additional information we can provide that would help your business. You can have a voice in what information we post about next, so please take a moment to fill it out if you can.
And if you haven’t already, be sure to also check out Melody’s latest article titled “Who has the financial risk on a merchant account?”. It seems there is a lot of confusion on this topic in the industry and Melody’s article provides some much needed clarity. I know I felt a lot smarter after reading it.
Have a great month, everyone! And as always, feel free to contact us any time for support (firstname.lastname@example.org) or sales inquiries (email@example.com). Or, call us at 805-449-1191.
by Melody Lashmar – It became evident that the chain of financial responsibility contingent with offering and gaining a merchant account is grossly misunderstood. It was during a panel discussion in Europe that the comment was made to one of the panelists stating that they, unlike an aggregator, do not take any financial risk. Although this is a common assumption, it is inaccurate and this post will explain why.
Credit card processing starts with a consumer and ends with a merchant and although they are interacting with one another, there is a long chain of players in between that makes it all possible.