Compliance Review

How aware are you of potential liability for not being in compliance with the host of new association regulations and reporting requirements? How sure are you that you won’t incur fines and penalties that could reach hundreds of thousands of dollars?

The card associations now require a multitude of reporting by acquirers and ISOs. These report requirements are complex, need to be done in a timely manner, and need to be completed consistently. Not every organization is large enough to hire a compliance officer. Luckily for the small to mid-sized ISOs and acquirers, The Strawhecker Group can efficiently perform these compliance requirement activities.

Since many member banks are now relying on agents to increase their growth and revenue opportunities, there has been a shift of control and responsibility for various sales functions. This shift has also brought about a transfer in compliance liability. Fines can range up to $25,000 for each violation and can result in agents losing their ability to solicit merchants. Are you aware that there are specific guidelines for business cards, websites and merchant agreements? You can even be penalized up to $100,000 for having incorrect disclosures on your marketing materials.

Reviews are now required at least once annually for each agent to confirm ongoing compliance with the Enhanced ISO/Service Provider Risk Standards document, Pin Security Requirements Self-Audit, Non Member Registration Program Application Packet and/or Cardholder Information Security Program. Are your records in order for each of these areas?

As an agent, it can be difficult understanding all of your obligations. Due to the fact that most agent agreements shift liability to you, it is imperative that you understand what is expected. Because agents are not direct members of the Associations, they do not have access to the rules that are associated with the potential fines. By taking this proactive step, you can eliminate the possibility of losing your ability to submit merchant accounts as well as your privilege to solicit merchants. The Strawhecker Group can even assist in determining if your member bank has registered you properly and is maintaining due diligence, thus ensuring no surprise penalties.

If you don’t want to be caught in the crosshairs of the card associations and want to stay out of the line of fire, contact The Strawhecker Group today. We have associates who are experts in compliance, having managed these specific areas for large ISOs throughout the United States for years. Stay compliant.