Transaction laundering prevention guide- EverCompliant blog is live!

On: October 22, 2016

About EverCompliant

EverCompliant is the pioneer and industry leader in transaction laundering detection and prevention. We help acquiring banks, PSPs, ISOs, payment facilitators, hosting providers, and online marketplaces to ensure that the merchants they service and their corresponding activities are both known and legitimate.

Transaction laundering, defined by MasterCard as “the action whereby a merchant processes payment card transactions on behalf of another merchant”, is a growing problem for the payments industry. We were the first to identify and solve this sophisticated merchant-based fraud scheme, and are the only company that has an effective solution capable of detecting hidden entities transacting through legitimate payment networks.

Our flagship product, MerchantView, is the first and only dedicated solution on the market designed from its core to detect and prevent transaction laundering. It applies proprietary cyber intelligence technology to identify unknown and hidden merchants funneling transactions through storefront websites.

EverCompliant was founded in 2011 by Noam Rabinovich, Raz Abramov and myself, Ron Teicher. Our customers include prominent merchant service providers (MSPs) in the United States, Europe, Asia-Pacific and the Middle East. The company is backed by international strategic investors.

Why is Transaction Laundering a major issue?

By funnelling payments through storefront websites, transaction launderers are able to link extended networks of unreported, hidden and often illegal ecommerce websites to legitimate payment networks whilst staying undetected.

Transaction laundering often masks activities explicitly prohibited by international law and card associations, such as drugs and weapons trade, illicit pornography, counterfeit goods sales, illegal pharmaceuticals, terrorism financing and money laundering. For as long as transaction laundering goes unchecked, these unlawful activities will continue to prosper and grow, much to the detriment of our wider society.

Numbers that can’t be ignored: Transaction laundering is ubiquitous and present within every merchant portfolio EverCompliant analyzed to date. MerchantView identifies that on average, the size of the unknown merchant portfolio is 6% to 10% of the known client base. In other words, for every 10,000 known merchants there are 600 to 1,000 unknown merchants transacting through the MSPs’ payment networks without their consent or knowledge.

Most payments industry stakeholders are unaware that transaction laundering is an issue they should be addressing. However, industry leaders and credit card associations take this issue very seriously. Merchant Service Providers are required to ensure that the merchants they service are compliant with respective card association rules and international regulations in order to maintain the relationship and avoid penalties and fines.

How do we stop it?

Due to its very nature as undisclosed and hidden activity, Transaction laundering is almost impossible to detect without our dedicated solution. That is precisely why we developed MerchantView.

How MerchantView works

MerchantView is a unique merchant risk management solution that offers ongoing support to our clients throughout entire lifecycle of their merchant portfolios – from sign up through onboarding and continuous monitoring. It utilizes proprietary cyber intelligence technology to continuously monitor all aspects of merchant networks to identify, detect and prevent undisclosed activity from entering the payment ecosystem.

MerchantView is a fully automated, pure SaaS solution with full API support, providing fastest time to market that can be measured in weeks, even days.

Keep up-to-date with our blog

It is our vision to eradicate transaction laundering and preserve the integrity of the payment systems through the use of our sophisticated cyber-intelligence platform, MerchantView.

Our blog will serve as a go-to resource for the latest developments in the world of transaction laundering detection and prevention. We will explore how this sophisticated fraud scheme affects payments industry as a whole and Merchant Service Providers in particular. Achievements in our quest to eradicate transaction laundering will be celebrated and set backs (if any) dissected.

If you are an active member of the payments industry and need to be kept up to speed on transaction laundering developments, sign up for our blog updates.


Trackback URL: https://evercompliant.com/transaction-laundering-prevention-guide/trackback/


    Leave reply:

    Your email address will not be published. Required fields are marked *