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Blog Category: High-risk Merchants

The start of 2014 means that some of the most exciting sporting events around the world are nearing, including Super Bowl XLVIII, the 2014 Sochi Winter Olympics and The FIFA World Cup. While these three events feature very different sports, they have one thing in common: ticket prices to attend any of these events come at a steep price and high demand. Whenever there is an in-demand, popular event like the above, scammers are sure to take advantage of spectators looking for a bargain.

For acquiring banks, that means higher chargebacks and potential financial loss.

– January 22, 2014 –  Allied Wallet, a G2 Web Services client, uses Global Boarding to dig deep into its potential merchants’ histories to uncover hidden risks and make more informed boarding decisions. Due diligence during the boarding process is the first line of defense when it comes to protecting a company’s merchant portfolio from financial loss due to risky merchants. With the increasing demand for a quick turnaround time at boarding, the careful balancing act of thorough due diligence along with the need for speed at boarding is a rising challenge. G2 Web Services developed Global Boarding, a fast flexible due diligence solution precisely to solve this problem.

transaction laundering

Cyberlockers are file sharing sites that allow consumers to upload files to share with others.  They continue to increase in popularity, but with them come an added risk for acquiring banks. While many cloud storage services legally store content for users, cyberlockers – also known as file lockers – incentivize users to upload popular files for others to download. Due to the largely unregulated nature of cyberlockers, these files may include illegal content such as child pornography, bestiality, rape violence videos, pirated software, movies, and music due to their popularity and demand. Authorities have begun to crack down on this illegal file sharing, as seen by a recent string of legal actions against file lockers, leading to the closure of file sharing websites and increased regulatory scrutiny for cyberlockers and their acquirers.

Post Categories: Blog, High-risk Merchants, Prohibited Content

Fraudulent merchants are abundant during the holiday season, profiting from consumers’ generous spending during the most lucrative shopping days of the year.  According to a report by ComScore, online retailers are estimated to bring in over $52.2 billion during November and December in the U.S. alone. The volume of transactions in such a short period of time is the perfect breeding ground for fraud schemes that can hurt acquiring banks and payment providers. Not only do the holidays bring an increase in merchant fraud, but they are also a popular time for merchants to add non-compliant goods to their websites, as these can often be very profitable. Monitoring merchants for compliance and fraud is imperative for acquirers and payment providers during this busy shopping season to prevent possible brand damage and financial loss.

This week, we sat down with Robert H. Caldwell, Founding Partner of G2 Web Services, to interview him on cyberlockers and marketplace merchants, and the risk they present to the payment system. Read on for Bob’s insights into where cyberlockers and marketplace merchants fit in the payment system, the risks associated with them, and best practices for payment providers to mitigate risk associated with these entities.

As an acquirer, knowing what your merchants are selling is key to minimizing your risk for potential violations, especially since merchants can add products to their websites at any given moment, without your knowledge. New products are constantly put on the market, and unfortunately, illegal and risky products are often hard to detect and monitor. Without being aware of these products, you run the risk of brand damage and potential violations, including regulatory fines and even legal penalties. While the list of goods and services that violate MasterCard’s BRAM program and Visa’s Global Brand Protection program (not to mention the law) is exhaustive, G2 Web Services has compiled a list of five lesser-known products that we have identified on merchant websites that you should be on the lookout for.

Despite new card network regulations that require acquiring banks to register all their merchants’ service providers, much confusion remains about these requirements and service provider risk in general. G2 Web Services has identified thousands of service providers on behalf of acquirers worldwide, as well as helped facilitate their registration with the card networks. We’ve developed industry knowledge, best practices and tools that can help bring you up to speed.

Post Categories: Blog, High-risk Merchants, Merchant Risk

We all know how difficult it can be as an acquirer to monitor all of your merchants’ websites effectively. It is a costly and time-consuming process to do in-house, and regulations are constantly changing. However, choosing to not monitor your merchants can open you up to brand damage, legal liability, and card network assessments.

Here are the “Top 5 Tips to Monitor Your Merchants” from G2 Web Services, a leading provider of payment risk management solutions and expert at merchant compliance monitoring, to help you stay better protected.

See how our solutions can help you.

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