“ Now , any one of these in and of itself is not dispositive . But , when you add them all together and create that mosaic , this is where the regulators will hone in .”
The key questions to ask include :
• Do they have a lot of requests for refunds ?
• Do they have complaints being filed against them by governments ?
• Do they have lawsuits being filed against the merchant ?
• Do they see the merchant engaging in activities ?
• Are they load balancing ?
• Are they delaying chargebacks ?
• Are they spreading sales over multiple accounts , in an attempt to obfuscate the fraud that they ’ re trying to commit ?
• Do they use a lot of shell companies ?
• Do they have a history of settlement actions or enforcement actions with the regulators ?
• Are they missing or do they have incomplete or inconsistent info on a regular basis ?
Then , it is a case of being careful not to onboard – or continue to keep on board – any merchants who engage in that type of behaviour . In short , if you understand what the red flags are that regulators are looking for , you can keep yourself ahead of the regulations curve . fintechmagazine . com 111