Hidden high-risk industries could be hiding risky business behind ‘low risk’ MCCs, as this saves them from the acquiring bank’s high scrutiny applied during the on-boarding process of high-risk merchants. Merchants, involved in high-risk business, use camouflage tactics to ‘fly under the radar’ and negotiate favorable (low risk) processing rates.
You estimate the extent of TL to reach $352B worldwide. Criminals who abuse merchant accounts to process card payments for their illegal products or services are threatening legitimate e-commerce and merchant acquirers. In 2016, there were over 500,000 illegal shops online. What makes TL hard to detect?
During the past decade, fintech has revolutionized the payments industry, and incumbent merchant acquirers have been struggling to compete. Why have Silicon Valley innovators been so successful in challenging powerful incumbents with decades of experience in financial services?
Paul Rohan is an Irish researcher, management consultant, executive educator, speaker and author on business strategy in financial services. He specializes in examining the potential impact of PSD2 and Open Banking on market structures in global financial services…..
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