What Is Transaction Laundering and How to Avoid It?

Commerce and payments are increasingly shifting towards mobile and online. As a result, the method of fraud known as that is gaining transaction laundering is gaining traction with cybercriminals.

Transaction Laundering

Transaction laundering is also called undisclosed aggregation or factoring. This is a rather challenging problem, and happens when legitimate merchant accounts are used to process unknown transactions for another line of business, regardless of whether they’re illegal or not.

Transaction laundering is becoming a major problem for acquirers and payment processors. The thing is that it’s rather widespread and can’t be identified easily. What is more, transaction laundering puts acquirers at risk for fraud and can cause brand damage.

Merchants dealing with transaction laundering or having WorldPay complaints should turn to a payment expert in the UK so to be able to get the best deal for their business. With a true professional in the field, you can get free consultation, reviews of contracts, rates, and fees so to find the right processor to work with. Make sure to turn to an experienced payment specialist that will provide you with the most honest snapshot of the company at the time of writing.

Avoid Becoming a Victim of Transaction Laundering   

Transaction laundering is illegal and can lead to severe consequences. It’s hard to detect, and transaction launderers won’t stop trying to exploit the payments process. That’s why it’s critical for merchants to take the necessary steps so to avoid this type of payment processing fraud. What should merchants do?

  • Review affiliates before entering into partnership with them. Make sure their content is legitimate and their advertising is true.
  • Take note of the way your affiliates market their goods. Make sure there aren’t any unrelated items associated with them.
  • Make sure to work with reputable affiliate networks.
  • Focus on building a clearly-defined affiliate policy. Make sure you and your employees enforce it.

Transaction laundering is a type of money laundering that occurs when payments for illicit purposes like counterfeit goods, street drugs, unlicensed gambling are processed by legitimate merchants on behalf of another party. Take the right measures to ensure your business transactions remain clean.

Author Bio: Electronic payments expert Taylor Cole is a passionate entrepreneur who enjoys to write, produce music, and travel. bestpaymentproviders.co.uk is the UK’s best WorldPay complaints company, serving both traditional and high-risk merchants.