June 04, 2009 04:38am
Warning From Cashtronics
Source: Cashtronics
by: Company Press Release
(BARCELONA, SPAIN) -- Too many merchants risk their time, money and reputation with an internet payment service provider (IPSP) that is illegally aggregating merchants. A merchant should take the time to find out as much as possible about the IPSP they operate with or plan on working with. These days’ merchants too often focus on the bank rates offered rather than the reputability of the IPSP, the security of their transactions and the problem of merchant aggregation.
One of the most important things to find out about an IPSP is if each merchant will receive their own merchant account and contract with the bank. If a merchant is not provided with an individual merchant account number there is every possibility that the IPSP is aggregating merchants.
Merchant aggregation is when an IPSP groups many different merchants under one master merchant account. This is illegal under MasterCard and Visa regulations as well as against PCI Compliance rules and can lead to serious consequences for the IPSP, which puts a merchants business at risk.
When (not if) an IPSP is caught aggregating the consequences are catastrophic for a merchant. The acquiring bank is given a huge fine which in turn leads them to freeze all the funds in the account and stop any further processing. All the merchants’ funds are held and their capacity to process cards via that IPSP is terminated. These funds may never be recovered or at best, it may be years before the bank actually releases the funds to the IPSP who could be bankrupt by then.
As stated by Carl Buchalet CEO of Cashtronics online payment system:
''Over the last few years we have seen a sharp increase in the number of merchants coming to us requesting their own legitimate merchant account number after being cut off from Visa and MasterCard through no fault of their own.''
Asking your internet payment service provider the following questions could save your company from potentially serious problems:
ü are they PSP PCI-DSS 1 certified?
ü Do you receive your own merchant account?
ü Do you sign a contract directly with the bank?
ü What will the descriptor say on the client’s credit card statement? (will it be your company or the ISPS name- in which case they may be aggregating)
ü Who is wiring you the funds, the IPSP or the bank? (Whoever is handling your funds must be in good financial health)
Note- when looking for an ISPS if the application process i easy- there is something wrong! Good internet payment service providers will require a diligent compliance process before supplying a merchant account to an individual merchant.
About Cashtronics
Cashtronics is a leading European based online payment company. Specialized in processing payments for high risk merchants through a secure (PCI compliant, Level 1), flexible and cost effective payment solution. Provides individual merchant accounts with highly competitive industry rates starting as low as 3.5%.
Contact:
Carla Arguelles
Cashtronics
Tel: +34 932 240 199
Fax:+34 933 969 671
Carla@cashtronics.net
http://www.cashtronics.net/bankrates.php
www.cashtronics.net
www.cashtronics.fr
www.cashtronics.es
www.cashtronics.de
PCI DSS Level 1 certified: highest security level in the industry
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