Solutions to counter the transaction laundering and prevent card fraud
Thanks to explosive growth in the electronic commerce, merchants currently have a possibility of selling goods and services cross border without any need of establishment of a physical store. E-commerce is growing rapidly (as I already discussed in my previous article ). However, this growth has a darker side in the appearance of transaction laundering which is one of the payment industry’s most complex and pernicious problems . In this article I will explain what are major threats which should be kept in mind by both acquirers and online marketplaces to reduce susceptibility of exploitation by bad actors. What is transaction laundering? Prior to jumping right into a discussion of the money laundering issues occurring in e-commerce, I shall provide a brief and coherent definition of transaction laundering to put everyone on the same page. The transaction laundering is basically an activity in which entities, unknown to an acquirer, are processing payments through the