Mastercard has an unofficial system in place to determine whether or not a retail merchant organization is credit worthy. The unofficial plan is the MATCH plan or Member Alert to Control High Risk program. Essentially it means that as a retail merchant, you may lose access to your credit card processing privileges without receiving prior knowledge that the action is taking place.
You will not become aware of your placement on the MATCH list until you apply for financing or open a new bank account. At that point, you receive a denial notice upon submitting your business application to a new financial institution. That notice states that your reason for denial of financing is due to being on the MATCH list.
How Does a Retail Merchant Make
When the sales transaction involves a credit card, the consumer receives a refund of the sales transaction amount on the same card. It registers as a chargeback on the merchant’s end of the refund transaction. Excessive chargebacks occur on any month where the merchant chargebacks total one percent of its credit card sales transactions or equals more than $5,000 in
Likewise, it also takes into consideration fraudulent credit card transactions by the merchant that meet or exceed $5,000 or more over the course of 10 transactions.
MATCH Reason Code 07 - Fraud Conviction
It relates to situations where a court of law finds one or more principal members or partners of a company guilty of fraud.
MATCH Reason Code 08 - MasterCard Questionable Merchant Audit Program
MasterCard may deem a retail merchant to be questionable when that merchant meets certain criteria on the MasterCard set of practice guidelines.
MATCH Reason Code 09 - Bankruptcy, Liquidation, Insolvency
It relates to any situation where a partner or principal owner of a retail company files for bankruptcy, which means the individual is unable to satisfy personal financial obligations.
MATCH Reason Code 10 - Violation of Standards
It occurs when a retail merchant violates one or more codes of conduct or business standards practices that outline how a merchant is to handle credit card
Timeline of this case should be clearly organized in order to better understanding this case. In 2009, Poor Son transferred Rich Grandson to Parent. In 2010, Poor Son filed a voluntary petition for reorganization under Chapter 11 of the US bankruptcy code, and Parent deconsolidated Poor Son from statements. In 2011, Poor Son filed an action against Parent seeking to void the transfer of Rich Grandson. In May 2012, the bankruptcy court held a selection meeting in which it considered competing plans of reorganization submitted by four bidders. In June 2012, OtherCo, an unrelated party, became the wining plan sponsor. In July 2012, OtherCo rescind its offer because the bad evonomic condition. In December 2014, the bankruptcy court recommended
...useless car to a junk yard to recover some loss, but the difference of the re-sale of the junk-car would be a significant loss. Though there were no adequate assurances to the contract, anticipatory repudiation is the only probable remedy for Jack. However, the outcome would weigh on the predominant factor test, which is met because Tom is covered as a merchant because he is operating in his usual daily business, and Jack is the buyer. The sole purpose of the contract was for Tom to sell Jack a car, and for Jack to buy a car from Tom. The UCC, though less stringent than the statute of frauds, does effectively regulate commercial transfers allowing the free market to operate without diminishing the integrity of trade.
Employees were using the cross-selling which is a concept of attempting to sell multiple products to consumers. This concept led to fraudulent actions, in fact employees were encouraged to order credit cards for pre-approved customers without their consent, and to use their own contact information when filling out requests to prevent customers from discovering the fraud. " The Wells Fargo scandal was far different. Instead of a select few doing bad things, the unethical behavior was widespread at the bank, with thousands of employees engaged in secretly creating new bank and credit-card accounts for customers without their knowledge, resulting in overdraft and other fees." (Kouchaki, 2016). According to the Los Angeles City Attorney, employees were opening and funding accounts without customers' permission or knowledge in order to "satisfy sales goals and earn financial rewards under the bank's incentive-compensation program." This means that the board members of the bank were aware of that it wasn't by the employees' own wills. In fact, they were pressured by aggressive goals and performance which led them to immoral behaviors. Facing this problem, Wells Fargo bank had to take some measures to avoid bankruptcy, losing customers, or loosing brand
This part of Ceridian is the number one supplier of electronic cash card and related services to the over-the-road trucking industry. Comdata's proprietary credit and debit card is a multi-service card, which allows payment for a range of personal and company related expenditures through a single card. Comdata serves over one million truckers in the United States with its proprietary card for over-the-road truck carriers and with a co-branded Comdata MasterCard® for local fleets. This is the credit card of choice for large local fleet operators including Pepsico, SYSCO and Frito Lay. Comdata is also a leading provider of retail gift, cash and stored value chip cards. In 2003 Comdata shipped more than 250 million cash cards to retailers, grocery and restaurant chains, and entertainment companies. Retailers including The Gap, Lowe's, Applebee's, Safeway, J.C. Penney and Kroger take advantage of Comdata's stored value card services.
CFPB activities on credit cards arise concerning, first, the CFPB CEO made them “more difficult to use.” Once an individual becomes a client of CFPB the alternative access to “hard cash” becomes fairly possible. As banks are already expensive for the customers of CFPB due to their profit margins, the other “illegal loan sources” become even more unreachable (Murray, 2017). So, certain monopolizing tendencies can be traced.
people in Canada during the 1990's. In simplest term, corporate and individual bankruptcy law provides a set of rules to prevent chaos among the creditors of an insolvent corporation or individual.
Capital One uses IT through its information-based strategy (IBS) to “record, organize, and analyze data on the characteristics and behaviors of their customers,” as stated by CEO Richard Fairbank. Their philosophy was to exploit information by constructing scientific models that could be used to both assess the creditworthiness of potential cardholders through FICO scoring, and to customize product offerings for existing ones. This was done through data mining, sorting, customizing offers and marketing campaigns, and then analyzing this data to see what campaigns worked – for what reason and what it returned in revenue and profit generation. This differs from other financial institutions in that these other institutions were compiling data manually, accepting applicants based upon debt-income ratios and were all charging the same interest rate and annual fee.
Bankruptcy is where an individual or in this case a corporation claims that is not able to pay its lenders and/or creditors any more. By doing this the filer gains protection from its lenders while reorganizing itself to stay in business. Bankruptcy is defined by the Congress under the U.S. Bankruptcy Code, in which the Congress revised in 2005 called Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA). This act addresses the increased number of bankruptcy filing, loopholes and incentives that allowed for abuse and the financial ability of debtors.
James E. Driscoll in 2012 suggests that you rip up those terrible offers because identity
Managers can skew the data by not handing cards in just as employees may not hand over to management if it is a bad reflection on the service.
Operating a petty cash system so reimburse staff if they have used their own money to pay for business items, for example taxi fares.
In response to the emergence of credit card fraud in 1984, congress passed the Credit Card Fraud Act to give federal prosecutors a broad jurisdictional base to more effectively prosecute a variety of credit card frauds. This act broadened the definitions of credit card and debit instrument to any "access device," including an account number, increased the maximum penalties of incarceration and fines, and provided a substantial repeat-offender penalty (U.S. Department of Justice, 2013).
• The financial services industry is highly competitive, and JPMorgan Chase’s inability to compete successfully may adversely affect its results of operations.
Visa and MasterCard are non-stock, not for profit membership corporations owned by thousands of diverse financial institutions (i.e.- banks, credit unions etc.). The Visa association was formed by a group of American banks in the late 1960’s to assist its members in issuing general-purpose payment cards and signing merchants to accept those cards (Allen, 2000, 2). Visa and MasterCard are considered to be an “open” or joint venture relationship with each other and their association members. In essence, this means any financial institution may join the Visa and MasterCard associations assuming they can meet certain capital adequacy requirements, and comply with certain association rules. In return, Visa and MasterCard provide essential functions to the member banks. They license their members to issue Visa and MasterCard branded credit and debit cards, sign members to accept those cards, market the cards to ensure brand recognition, develop new card products and services, and provide an infrastructure of communications, processing, authorization, and settlement functions necessary for the system to operate. Together Visa and MasterCard account for almost 80% of the overall market share in the credit card industry.
A person who is unable or unwilling to pay his or her debts may declare bankruptcy. The state of being solvent means that one has the ability to pay his or her debts. However, insolvency means that a person cannot pay his or her debts. In order to declare bankruptcy, a person must file a petition for bankruptcy in a bankruptcy court. A voluntary bankruptcy proceeding is started by the person who is declaring bankruptcy, whereas an involuntary bankruptcy proceeding is started by the creditors of the bankrupt person. A creditor who is not a party to the bankruptcy proceedings, but who has an interest in the proceedings, may file an ex parte application with the bankruptcy court.