We have seen and reported on a few actions that have been occurring over the last year in terms of the pressures on banks and payment processors. Recently, Chase has closed several checking accounts for people associated with the adult industry. The outcry has resulted in a very prestigious publication taking notice. The American Banker article that addresses this recent phenomenon is an excellent read that brings up several important points and followup questions for the reader.
Banking seemed to be a service that every legal business, and US citizen was entitled to but with the recent activity it is now evident that this is not the case. The banking system, which is regulated by the US government, can discriminate against who it offers it’s services to.
To read the full article you can go here.
May is here and what an exciting month we have in store! Here at L3 we’re in the midst of developing new product offerings that are sure to increase revenue for our merchants, and we’re eager to share details on those services in the near future. And while we’re all busy working on these new features, we’ll still make time to honor the wonderful moms in our respective lives on Mother’s Day this Sunday. In fact, I’ll be hosting Mother’s Day dinner at my house this year, celebrating my wife, my mom and my mother-in-law by doing what any respectful son/husband would do…watching the NBA playoffs. I’m kidding, of course! Moms come first, always. Even during the playoffs.
What comes first for us here at L3 is helping our merchants maintain the health of their merchants accounts, ensuring long-term success for their business. But did you know, even merchants who are compliant with all card association rules can be targeted by banks due to increased pressure by bank regulators to identify fraud. Melody’s latest article titled “Compliant Merchant Account, So What!” sheds light on this important subject and discusses some ways to address this issue, so be sure to visit our Blog and check it out.
One of Melody’s recommendations to avoid being flagged by the bank is to work closely with your Gateway to ensure all of the necessary fraud scrubbing is in place, and SBW is the perfect partner for preventing (how’s that for alliteration?) fraud. Not only will SBW help you create a custom fraud shield tailor-made for your business model, but also each fraud filter was meticulously designed based on years of historical data. Think of SBW as the Hattori Hanzo of fraud prevention, only without the cool mustache (that could change come Movember). Contact SBW today for more information at 1-877-282-9057.
And finally, if you’re not already following L3 Payments on Facebook or Twitter, we’d love to connect with you. Be sure to add L3 and send us your questions, comments, playoff predictions or anything else you think we’d be interested in. We look forward to hearing from you!
Have a great month, everyone!
By Melody Lashmar Operation Choke Point and increased pressure by bank regulators on Financial Institutions to identify and eliminate merchant fraud has certainly increased the monitoring efforts by banks regarding their payment services. Under Operation Choke Point, Financial Institutions, ISOs and IPSPs are being held liable and accountable for their merchants’ fraudulent activities.
The FTC has communicated that Financial Institutions and payment processors know or should have known about any deceptive acts or practices of their merchants. They lean on the assumption that Continue reading