Case Study: Issues with Unverified Acquirers

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 Case Study: Issues with Unverified Acquirers


Recently, we encountered a significant issue with one of our acquirers. Our partner informed us that the delay in payments was due to a "greeting from Visa" (compliance fine). However, there are no official confirmations, and the issue has remained unresolved for over a year. The acquirer has not responded and has been acting rudely, claiming that a legal process is underway. We have engaged lawyers and regulatory authorities to address this problem. Interestingly, the acquirer continues to operate normally, and their business appears unaffected šŸ„².


This situation can be explained by the fact that our acquirer is registered as an MSB (Money Services Business) and operates as a third-party processor. This means they cannot directly receive information from Visa and can only provide verbal comments. The sub-aggregation model complicates interactions and problem resolution.


Many payment companies operate under similar models, where their acquirers violate the rules of international payment systems (IPS). This is the primary cause of fines. In our case, the provider likely does not have a direct dialogue with the acquirer. Such a model of selling services through third parties often leads to issues.


The lack of transparency and direct dialogue creates conflicting conditions, and complaints are unlikely to quickly resolve the situation. Having a direct dialogue with the acquirer and access to all information about the fines allows for effective problem resolution.


Recommendations:


1. Work with acquirers who have transparent relationships with international payment systems and comply with their compliance requirements.

2. Choose partners with whom you can establish direct dialogue and resolve emerging issues in real time.

3. Before starting a partnership, thoroughly check the partner's reputation, review client feedback, and determine how effectively the partner resolves issues.


This case highlights the importance of working with verified partners and maintaining transparency in relationships with acquirers. Be cautious and thoroughly vet your partners.


#Compliance #PaymentProcessing #RiskManagement #Fintech #Payments #Visa #MSB #FinancialServices #Transparency #BusinessEthics #DueDiligence #OnlinePayments #MerchantServices #ThirdPartyProcessor #Subaggregation #PaymentGateway #RegulatoryCompliance #BusinessContinuity #FinancialSecurity

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