The rapid growth of the merchant cash advance (MCA) marketplace has provided many merchants with an alternative source of funds for business development and provided Independent Sales Organizations (ISOs) with a profitable new revenue stream that can help offset pricing pressures in the hyper-competitive card processing business. While there have been no major reports of any increased risk to acquirers that have partnered to offer MCA programs, this growth has led to reports that some organizations may be engaging in questionable sales practices that threaten to create a reputational risk for the merchant acquiring industry and attract the unwanted attention of federal/state lawmakers and regulators. As such, the ETA Fraud and Risk Committee have developed this paper to explain the MCA industry as well as outline risks that are associated with this product. The MCA process is currently unregulated.

Download the White Paper  

To aide in the continued prosperity of this product, the committee has also drafted a list of best practices associationed with Merchant Cash Advance .