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Insights and Expertise

plementary skill sets.
Sometimes reps don't know that People are lured into this industry with the promise of re-
they are presenting high-risk siduals and entice merchants into cash discounts and dual

accounts as low-risk, because pricing 0 percent programs that offer kickbacks. Others
go so low on their rates that they erase any possibility of
they don't ask the right questions; profit for themselves and the rest of us. When MLSs get
other times they are participating 80-85-90-95 percent splits, there is little left over for other
MLSs, ISOs, banks and processors. It's time for everyone
in the fraud. in the value chain to think about how we can be better.
Want to know more? Keep reading The Green Sheet and
these systems—just because you want to make money consider following me on LinkedIn, where we can share
from them—is not a good look. ideas and support each other.
I have seen merchants find out they have been ripped off,
and they're in a non-cancelable lease. We will not allow Allen Kopelman, a serial entrepreneur, is co-founder and CEO of
agents who do this sell for us, because we do not want to Nationwide Payment Systems Inc. and host of B2B Vault: The Payment
be associated with this type of business practice. Technology podcast. Email him at allen@npsbank.com nd connect on

Presenting high-risk as low-risk LinkedIn https://www.linkedin.com/in/allenkopelman/ and Twitter @
AllenKopelman.
Sometimes reps don't know that they are presenting high-
risk accounts as low-risk, because they don't ask the right
questions; other times they are participating in
the fraud. In some cases, the merchant is a fraud-
ster showing an MLS a website selling basic con-
sumer goods, clothing and electronics, but hiding Snapshot of Upcoming Events
the real product behind it.

You can't see that they are really selling CBD,
gambling or illegal items. The MLS gets fooled,
and maybe underwriting does not catch it either.
Sometimes a simple Google search could reveal
something about the merchant, but there are oth-
er telltale signs, such as uniform or high pricing
on all items. If you ask for the inventory pictures,
they may make excuses. I've also seen MLSs par-
ticipate in this type of fraud. February 5 - 7, 2025

I get it that everyone wants to make money, but Rosen Shingle Creek Orlando, FL
do it the right way. Underwriting doesn't always https://www.atmia.com/conferences/us/registration/
catch this type of fraud, and it impacts everyone.
Vendors get burned, MLSs have a harder time
getting new accounts approved and underwriters
become extra cautious.

We sent in a deal, and the underwriter asked how
we got the client. We explained it was an inter-
net lead, and they showed us that the documents
were all fake. I could teach a whole class on how
to spot this activity now.
Let's turn the page USA 2025 Symposium

Most merchants that participate in subpar deals February 12 - 13, 2025
are taking advantage of an ISO or MLS, which is
not a good way to start a relationship. Instead of The Ritz-Carlton, Tysons Corner Washington, DC
beginning a relationship at a competitive disad- https://womeninpayments.glueup.com/event
vantage, create a partnership of equals with com- 114654/register/

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