MERCHANT ACCOUNT SCAMS
The most common problem faced with
merchant accounts in merchant account
scams. Scams can be broadly classified
as partial scams, full-scale scams as
well as backdoor scams.
Partial scams refer to changed or
improper information with regard to
charges, features, fees, prices and
overall description. The “hidden
charges” scam is the most encountered
partial-fraud scam. Here, some of the
fees get concealed. The consumer is not
given adequate information due to which
he loses considerable amount of money.
In addition to fees, additional rates
and charges too get concealed.
Additional charges are usually applied
by financial institutions and banks that
carry out the processing. During the
processing, these charges remain
concealed. These charges will come to
light only when the bank prepares the
bill that reaches the e-commerce
Some of the organisations that deal with
the processing of credit cards so out
clearly list out the full price. The
list that has complete information
should include bank charges, rates and
fees. There should also be a link that
will clearly show these charges.
Usually, this will not be provided in
the merchant account provider’s website.
However, lack of links does not
necessarily imply presence scams. There
are a number of providers that work with
various banks, which makes it difficult
for them to include such details. This
is especially true with providers who
handle offshore accounts. In such
situations, it is not very easy to get
the details of the bank. However, in a
few cases, this will result in the
closure of e-commerce businesses.
Though almost all the scams encountered
these days fall under the partial scam
category, this does not mean the full
scale scams do not exist. The
possibility of the existence or
occurrence of a full scale scam cannot
be eliminated. But, such scams are
rarely seen. A few e-commerce merchants
have faced full scale scams in the past.
They are usually cheated as they are not
provided with adequate information on
the website. The forms that need to be
filled are short and the bill they get
will be shockingly high. The rates will
be much higher than the normal rates.
The phone numbers specified on such
websites are usually non-existing ones.
If the number turns out to be correct,
it remains unanswered. Hence, there will
no means of getting in contact with the
However, back door scams cannot be
carried out very easily. However, the
occurrence of this type of merchant
account scam cannot be eliminated. Back
door scams are known to cause maximum
damage when compared to partial scams
and full scale scams. With back door
scams, the program code is changed which
gives and opportunity for making a hole
in the system and can be accessed by
third parties on the same gateway. High
level skills are required to carry out
back door scams. This is the main reason
why this type of scam is difficult to
carry out. By avoiding these incidents,
information leaks can be avoided.
Contact one of our helpful account
representatives to assist you in the
setup of a
high risk merchant account or
offshore merchant account for a
high risk merchant.