Do Payment Facilitators Have to Be PCI Compliant?

Data security is a critical component of the work that payment facilitators do. Proper management of sensitive data is an essential responsibility for anyone enabling access to the payments system. So every payment facilitator needs to understand the role that PCI compliance plays in their overall risk management efforts.

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What are Reserves, and How Do Payment Facilitators Use Them to Mitigate Risk?

Payment facilitators have a number of tools they can use to reduce their exposure to risk. To mitigate against credit risk, PFs will sometimes hold back funds from the submerchant – known as a reserve – to guard against possible future losses.

When are reserves typically used, and is now – as many businesses are experiencing financial hardship because of the coronavirus – a time to implement them?

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What is a Submerchant?

The relationship payment facilitators have with their merchants is at the heart of what PFs do. Working with a payment facilitator makes acceptance simpler for merchants – especially for smaller businesses, for whom setting up individual merchant accounts can often be too cumbersome.

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What is Tokenization?

Tokenization is one solution that helps reduce the exposure of sensitive data in situations where it could be accessed by criminals.

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High-risk Trends Series: Reputational Risk

This week, we complete our series on high-risk trends with a look at types of merchants that could carry reputational risk for payment facilitators. David Khalaf, LegitScript In an era where corporate missteps are amplified by social media and a nonstop news cycle, payment facilitators can easily find themselves under attack for processing payments for…

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High-risk Trends Series: Fraud and Scams

By lowering the barriers to entry into the payments system for many legitimate merchants, the payment facilitator model potentially becomes attractive to bad actors as well. This means that payment facilitators have to stay well-informed about the biggest risks to their own portfolios, so they can remain vigilant in protecting them.

This week, we continue an occasional series on the high-risk trends that are facing payment facilitators with a look at recent frauds and scams.

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