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Resources & Reading Materials

Curated list of authoritative sources for understanding merchant onboarding, verification, and underwriting.

Regulatory Sources​

FinCEN (Financial Crimes Enforcement Network)​

Customer Due Diligence Rule

  • Website: fincen.gov
  • Search: "FinCEN CDD Rule"
  • Focus on: Beneficial ownership requirements, CIP requirements
  • Key Document: 31 CFR 1010.230

Beneficial Ownership Information Reporting

  • Search: "FinCEN BOI"
  • Focus on: Reporting requirements, ownership thresholds
  • Updated: Corporate Transparency Act (effective 2024)

Related Topics:

OFAC (Office of Foreign Assets Control)​

OFAC Sanctions Programs

OFAC Compliance Guidance

  • Search: "OFAC compliance guidance for payment processors"
  • Focus on: Screening requirements, risk-based approach
  • Document: "Framework for OFAC Compliance Commitments"

Related Topics:

Card Network Documentation​

Visa​

Visa Merchant Screening Standards

  • Source: Visa Core Rules and Visa Product and Service Rules
  • Search in: Visa Rules portal (requires network access)
  • Focus on: PayFac merchant screening obligations

Visa Integrity Risk Program (VIRP)

  • Focus on: High-risk merchant categories, compliance requirements
  • Related: Visa Acquirer Monitoring Program (VAMP)

Visa Global Brand Protection

  • Focus on: Merchant risk identification, prohibited activities

Related Topics:

Mastercard​

Mastercard Merchant Monitoring Standards

  • Source: Mastercard Rules
  • Focus on: Registration requirements, prohibited merchants

Business Risk Assessment and Mitigation (BRAM)

  • Focus on: Due diligence requirements for payment facilitators
  • Related: Mastercard Excessive Chargeback Program (ECP)

Mastercard MATCH System

  • Focus on: Terminated merchant reporting, inquiry process
  • Document: MATCH System Guide

Related Topics:

MCC Code Resources​

Official MCC Code Lists

  • Visa Merchant Data Standards Manual
  • Mastercard Merchant Category Codes List
  • ISO 18245 (International standard for MCC)

High-Risk MCC Reference

  • Study network-published lists of restricted/prohibited MCCs
  • Compare Visa vs. Mastercard prohibited categories
  • IRS Form 1099-K MCC reporting requirements

Related Topics:

Industry Resources​

Electronic Transactions Association (ETA)​

PayFac Guidelines

  • Website: electran.org
  • Focus on: Onboarding best practices, underwriting standards
  • Resources: PayFac white papers, industry reports

NACHA (The Electronic Payments Association)​

Know Your Customer Guidelines

  • Focus on: ACH-specific KYC requirements (relevant for payouts)
  • Website: nacha.org

PCI Security Standards Council​

PCI DSS Requirements

Vendor Documentation​

Study these to understand industry-standard verification approaches:

Identity Verification Providers​

Jumio

Persona

  • Focus on: Identity verification flows, customizable onboarding
  • Documentation: withpersona.com/docs

Alloy

Socure

Related Topics:

Business Verification Providers​

Middesk

  • Focus on: Business verification approaches, entity validation
  • Documentation: middesk.com/docs

Enigma

LexisNexis Business Verification

Related Topics:

Sanctions Screening Providers​

ComplyAdvantage

Dow Jones Risk & Compliance

Chainalysis

  • Focus on: Crypto sanctions screening, transaction monitoring
  • Documentation: chainalysis.com/kyc

Related Topics:

Industry Reports​

  • "State of PayFac Report" - Published annually by industry analysts
  • Payment facilitator underwriting best practices whitepapers
  • Annual fraud and chargeback reports (Nilson Report, Javelin Strategy)

Case Studies​

Research Focus:

  • Regulatory enforcement actions against payment processors for onboarding failures
  • Study why specific PayFacs faced penalties (search for consent orders)
  • OFAC penalty case studies
  • Card network fines and program violations

Sources:

  • FinCEN enforcement actions
  • OFAC civil penalties
  • Card network compliance bulletins
  • Payment industry news sites

Research Keywords​

When searching for information:

  • "Payment facilitator merchant underwriting"
  • "KYB verification payment processing"
  • "OFAC compliance payment processor"
  • "High risk merchant categories MCC"
  • "Beneficial ownership payment facilitator"
  • "Merchant reserve requirements"
  • "MATCH list TMF file"
  • "FinCEN CDD rule beneficial ownership"
  • "Chargeback monitoring program"

API Documentation to Study​

Review for understanding data requirements:

Stripe Connect Account Creation

Adyen KYC Documentation

Square Merchant Onboarding

PayPal Platform Onboarding

  • Focus on: Merchant verification, onboarding API

Payment Industry Publications​

The Nilson Report

PaymentsSource

American Banker

Bank Secrecy Act (BSA)

  • Source: FinCEN website
  • Focus on: AML requirements for financial institutions

USA PATRIOT Act

  • Section 326: Customer Identification Program (CIP)
  • Focus on: Identity verification requirements

Fair Credit Reporting Act (FCRA)

  • Focus on: Adverse action notices, credit report usage

Equal Credit Opportunity Act (ECOA)

  • Focus on: Discrimination prevention in decisioning

Related Topics:

Continuous Learning​

Stay Updated On:​

  • Card Network Rules - Updated quarterly
  • OFAC Sanctions Lists - Updated frequently
  • FinCEN Guidance - New rules and interpretations
  • State Regulations - Money transmitter license requirements
  • Industry Best Practices - Evolving verification techniques

Join Industry Groups:​

  • Electronic Transactions Association (ETA)
  • Regional payment associations
  • FinTech-focused communities
  • LinkedIn payment industry groups

Glossary Reference​

For payment industry terminology, refer to:

Project Glossary

External Glossaries

  • Visa Global Payment Terms
  • Mastercard Glossary of Terms
  • FinCEN Glossary

Next Steps: Apply your learning to the Self-Assessment Questions to validate understanding.

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