There is no argument when it comes to the truth that there are many fraudsters and cybercriminals out there trying their best to swindle and steal. This is an ongoing (and possibly ‘forever’) situation among all enterprises. — However, there are special systems in place both to prevent such crimes as well as to remove them once caught.
iPayTotal, a premier merchant services provider and payment solutions company, has had their fair share of merchants posing as legitimate merchants but who later remove their masks, revealing the true identity of their ‘business’.
“It’s especially hurtful to the industry because high-risk merchants already have a misinformed notion from the public as being ‘illegal’ or ‘immoral’ operators,” explains Sen Kugan, president of iPayTotal, adding, “and then when a truly fraudulent company or person is onboarded as a merchant through our organisation, even having passed all the due vetting requirements, goes on to commit illegal actions, our reputation is tarnished.”
Still, though these fraudsters do sometimes manage to acquire a merchant account, once their illegal activities are noted, their funds are put on hold. — Unfortunately, this is when what the industry calls ‘retaliation’ occurs.
“It’s rather sad to see reviews about iPayTotal in which malicious and untrue information is spread across the web, knowing well enough that the alleged remarks are false and from a source that was recently rejected after committing illegal or unapproved acts,” Kugan says.
According to the UK-based payment solutions company, there is also the stigma surrounding ‘high-risk industries’ which needs to be corrected, lest such legitimate industries become infected with the same label truly fraudulent companies rightfully have.
“High-risk industries are not some dirty, underworld entities, operating in alleyways at night; indeed,” Kugan explains, “you may be surprised to know that your travel agency or your online pharmacy are also considered high risk by banking institutions; yet they pose no threat to anything illegal.”
The reason, as the president of iPayTotal explains, for such misguided information, is that the phrase “high risk” may lead to other, more sinister connotations. However, this is not true.
One of the reasons for a merchant to be considered high risk by a bank might be because their chargeback ratio is high or that the high volume of sales per month are above a certain threshold. — These are clearly reasons for financial concern and not for anything illegal or immoral.
Moreover, it is important to recognise that even if a merchant account sells products such as those belonging to the adult industry, it is not illegal. Indeed, certain sectors of the population may find these companies to be “immoral”, but they are certainly not illegal.
“Finally, separating the illegal from the high-risk, and placing them in two entirely different categories, is what this industry and the public at large ought to understand since those operating in such businesses also have a living to make; and it is up to us (iPayTotal) to help such industries flourish,” Kugan concludes.
iPayTotal has the strictest vetting system in which meticulous underwriting is performed before any onboarding is conducted. However, in any business, even in traditional banking, there will always be criminal activity lurking.
Still, as the payment solutions company maintains, its anti-fraud systems and secure payment gateway are in place, ready to note any fraud before it causes large-scale fraud against customers, the payment solutions company and its acquiring banks.
For more information regarding safe and secure high-risk merchant accounts or to apply for a merchant account, please feel free to contact iPayTotal on +44 800 776 5988 or email info@ipaytotal.com.
