Quote:
Originally Posted by bellybuttonlint
so...lets just say....if someone were to rob people of their due monies somewhere along the line, firstdata can say " hey loser, were not responsable for the actions of this employee...they did it on their own...behind our backs...AND WE WERENT AWARE!
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I dont think anyone here acutually think that some processor will rob them just like that. I think the main concern here is that the processor is sending uncoded transactions.
(Uncoded transaction = a transaction coded with another MCC on purpose to get better interchange fees and lower risk to be put in the global chargeback monitoring programs)
By doing this the processor acts as an IPSP without the acquirers knowledge but is really nothing more than a API merchant (unknown aggregator). Normally when MasterCard and Visa runs some test purchases on an uncoded gaming/adult/other hr site the acquirer recieves a warning. A warning from MasterCard means fines and Requirement to stop processing for the merchant for 90 days, this often leds to acquirer termination of the merchant account without notice. This can then lead to bankruptcy for the "illegal" aggregator......
Now, merchant security 101...
Run a test transaction with your new IPSP on your own debit card. Call your bank after a couple of days when the transaction is settled and ask them for the MCC code for that transaction. If the answer is MCC 5967 or 'Inbound telemarketing merchants' you are good to go. That means that the processor and the acquirer has a very good relation and trust between them.