Factoring

A major violation of Association rules whereby one merchant processes credit cards for another merchant or another business not approved under the merchant’s processing application and agreement. This includes a business owner processing one’s own personal or business credit cards to get cash from one’s merchant account or for another business. If a merchant is found practicing factoring, the merchant will not only lose one’s merchant services account and be liable for major penalties, but shall also be added to the Match list, also called the TMF list, making it impossible to process credit cards through any processor or bank. The merchant can easily be caught and found guilty due to a cardholder dispute or chargeback.