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or paint an inaccurate, misleading picture of

The CFPB even spends time in the shops of what the merchant really is to low-risk pro-
some of the acquirers that I do business with, cessors who might only ask for an application
often squeezing them out of certain industries for and a voided check. It happens far too often,
and in such cases, it's only a matter of time be-

one reason or another. Operation Choke Point fore the merchants will be put at risk of being
is a good phrase for what they're doing. shut down, or worse yet, being placed on the
MATCH (Member Alert to Control High Risk)

list, also known as the Terminated Merchant

aren't just going to roll over and allow you to throw any File.

bad merchant at them. The CSI model of bringing them When this occurs, merchants are in a terrible spot.
in and watching them on the back end is gone. So for the Unfortunately, merchants don't read much of what they
MLS or ISO, it takes patience and perseverance to board sign. Ignorance is bliss, but it doesn't stand up in court.
these merchants. The documentation required can seem

endless. But, do you blame the banks? They are taking on During my time at CSI, I had the fantastic opportunity
a merchant that is a known risk. They are not going to to meet "The Great One," Wayne Gretzky in a personal
make a mistake if they can help it. setting. We were talking about the business world, and he

What else has changed? Government oversight is much said something that is one of his famous quotes: "You miss
greater as of late. The Consumer Financial Protection 100 percent of the shots you never take." Take some shots
Bureau is a good example. More online merchants are at high risk. I think you'll like it.
subject to Federal Trade Commission scrutiny, as well.
This, however, is what creates opportunity. And this is Steve Duniec is founder and President of Payment Advisors LLC. With over
a "new" risk factor. Most banks that are public entities 25 years of experience, Steve helps MLSs, agents and ISOs to place high
don't want to be known to harbor specific merchants and risk merchants. He can be reached at steve@payment-advisors.com or
803-228-0019.

sometimes entire industries where the CFPB and FTC

have focused their efforts.

In addition, the EMV (Europay, Mastercard and Visa)
liability shift occurred more than a year ago. Just as
expected, fraud has moved online and is on the rise.
Boston-based Aite Group LLC estimated that card-not-
present fraud will account for 38 percent of all U.S. card
fraud this year. This fact alone is scaring many acquiring
banks off and changing the landscape.

Underwriting changes

The other thing that has changed greatly is that all of this
is a constantly moving target. The bank that accepts a
certain merchant type today isn't necessarily going to do
so tomorrow. And the same goes for our sources. We have
15 different choices to place merchants, so we always need
to keep an eye on their underwriting changes.

The CFPB even spends time in the shops of some of the
acquirers that I do business with, often squeezing them out
of certain industries for one reason or another. Operation
Choke Point is a good phrase for what they're doing.

I'm all for the FTC and the CFPB doing their jobs with
entities that are flat-out taking advantage of people. But
in all industries, there are also the good guys, and that's
where we like to focus our effort.

Warm welcome for good agents

Sadly, one trend I've seen a lot of among us is salespeo-
ple who change Standard Industrial Classification codes,

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