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Table of Contents

Lead Story

Fraud busting, electronic style

News

Industry Update

Prepaid players join for expansion

Revenues up in downturn

Cash advance leaders advance

What a time it was: ETA 2008

New interchange rates for MasterCard and Visa, effective April 2008

Features

AgenTalkSM:
George Massey

Another 100 years of cash?

Mike Lee
ATM Industry Association

ISOMetrics:
Breaches across America

Views

Welcome to the wireless mainstream

Tim McWeeney
WAY Systems Inc.

Education

Street SmartsSM:
ETA wants you, too

Jason Felts
Advanced Merchant Services

No foundation, no success

Jeff Fortney
Clearent LLC

Merchant security is your business

Adam Atlas
Attorney at Law

Employee retention begins day one

Curt Hensley
CSH Consulting

Preparation power

Daniel Wadleigh
Marketing Consultant

Company Profile

BCC Merchant Solutions

New Products

Optimize revenue, minimize fraud

Vindicia ChargeGuard
Vindicia Inc.

Security stamped on hardware, software

Apriva Certified Secure Program
Company: Apriva

Inspiration

Face off to boost sales

Miscellaneous

POScript

Departments

Forum

Resource Guide

Datebook

A Bigger Thing

The Green Sheet Online Edition

May 12, 2008  •  Issue 08:05:01

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Cash advance leaders advance

Ten merchant cash advance businesses founded a new association - the North American Merchant Advance Association Inc., which was created to represent cash advance providers.

Jeremy Brown, President and Chief Operating Officer of RapidAdvance LLC and President of NAMAA, said the association sprang from a "loose federation of companies that met over the last 10 or 12 months to exchange ideas and information."

The companies shared a belief that best practices and ethical standards were vital to the industry and that expensive fraud detection tools were, unfortunately, becoming necessary "both to protect ourselves and to protect the acquiring community," Brown said. Forming an association gave members the opportunity to share ideas and experiences and cooperatively create fraud detection tools that can be shared by all members.

"This is a growing industry," said David Goldin, CEO of AmeriMerchant Inc. "I estimate there will be over 1 billion dollars in receivables purchased this year in this industry - and it's not going away."

Goldin is a founding member of NAMAA. "There was a need to have a voice for the industry and to establish best practices, both to protect the merchant and to also protect ourselves and the merchant acquirers from fraud," he added.

Cash advance MATCH

The fledgling association has already created a "bad merchants" database (similar to the bankcard industry's Member Alert to Control High-Risk database, called the MATCH list, which contains information on merchants who have been terminated for cause) and a fraud alert system.

NAMAA is working on a tagging system to identify merchants who already have cash advances in place; one of the most common scams affecting cash advance providers is perpetrated by merchants who have multiple, simultaneous cash advances and use multiple card readers to avoid detection.

The association is also looking closely at the Electronic Transactions Association's best practices as an aid in writing guidelines not only for NAMAA members, but for the cash advance industry's agents and resellers, as well.

The founding member companies of NAMAA are AmeriMerchant LLC, Business Financial Services LLC, Capital for Merchants LLC, Fast Capital LLC, Greystone Business Resources Corp., Merchant Cash and Capital LLC, Merchants Money Tree LLC, RapidAdvance LLC, Reach Financial LLC and Sterling Funding LLC.

Heavy duty dues

Dues for NAMAA general members are $4,000 per month. "The dues structure was designed to help cover the costs of the fraud detection and other tools we are developing," Brown said.

"We hope at some point in the future to have an associate member dues structure for acquirers and others who want to be involved but don't need to actually use the bad-merchant database or other tools."

NAMAA, a not-for-profit trade association, represents organizations in the United States and Canada that are in the business of providing working capital advance products based on credit, debit, or other card and electronic payment-related revenue streams to small and mid-sized businesses. For more information on NAMAA, visit www.northamericanmaa.org or call Erin Bozeman at RapidAdvance at 240-514-3195.

Notice to readers: These are archived articles. Contact names or information may be out of date. We regret any inconvenience.

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