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How to Detect and Prevent Transaction Laundering

Detect Prevent Transaction Laundering

A Merchant’s Nightmare!

Do you want to know how to detect and prevent transaction laundering? Transaction laundering is a deceptive and illicit financial activity in which a legitimate merchant’s payment processing system is exploited to disguise illegal transactions or the sale of prohibited or counterfeit goods and services. MasterCard defines transaction laundering as “the action whereby a merchant processes payment card transactions on behalf of another merchant.” Transaction laundering is also called factoring or transaction aggregation. Criminals abuse a legitimate merchant account to process illegal or fraudulent payments for illegal products or services.

  • How does Transaction Laundering work?
  • How to detect and prevent Transaction Laundering?
  • What are the legal consequences when merchants do not take any preventive measures?
  • What are the benefits of partnering with a dedicated payment processor?

If you want to find the answers to these questions, please read open Segpay’s Blog site.

You will find a lot of useful information in the bi-weekly articles that I have written in the past year for Segpay. Blogs about new payment trends, interesting business opportunities, lucrative new markets, risk management challenges and ways to help your company to stay compliant with ever changing rules and regulations.

All blogs are written in English and can be read in Spanish and in French.



Posted on

21st October 2023