Category: Underwriting Risk

How the Payment Facilitator Model Is Designed to Protect Merchants

For years, small merchants were underserved by the payments system. In recent years, more and more types of providers have arisen to bridge this gap.
But not all options are created equal when it comes to protecting merchants and the payments system overall. And this can have important implications for the businesses served.

Expert Perspective: How Can Payment Facilitators Mitigate Risk During COVID-19?

As businesses adjust to the changing times due to COVID-19, criminals and other bad actors are actively seeking ways to capitalize on the crisis. So, what can payment facilitators do to help protect themselves and their submerchants from fraud and other types of risk in this environment?

Expert Perspective: How Scary is Becoming a Payfac, Really?

For software vendors and others considering becoming payment facilitators, risk is understandably a top concern. So, for our ongoing series about the factors that go into deciding whether to become a PF, we ask experts a fundamental pair of questions: where does the risk come from, and how bad is it?

Social KYC: Ignore It At Your Own Risk

Payment facilitators have many tools at their disposal to help them understand the risk of taking on a particular merchant’s business during underwriting. In many cases, though, the tools rely on information provided by the merchants themselves.

To validate that information merchants have provided, however, PFs have a vast resource for fishing out the true nature of the merchant’s business and the identities of the people involved.

Q&A: The Risks and Benefits of Frictionless Underwriting

The advent of frictionless underwriting turned the payments world on its head. The ability to onboard merchants quickly with a minimum of fuss has enabled small merchants to accept payments more easily, clearing the way for many more to enter the market.

But the practice does have its downside. Lowering barriers to entry into the payments system lowers them for everyone, not just the good guys. With that in mind, PaymentFacilitator.com is beginning a series on the perils and the benefits of frictionless underwriting.

Are APIs Vulnerable? Two Crucial Places PFs Should Focus Now to Help Mitigate Risk

In the payment facilitator world, APIs are everywhere you look. In many cases, they’re the mechanism that allows the system to work – enabling payments infrastructure to integrate with other functions in a way that solves businesses’ unique problems.

So not surprisingly, API security is a hot topic. Does the use of APIs leave merchants more vulnerable to fraud? What are the special security considerations?