When one of the largest FinTech companies in Europe filed for insolvency last June, shockwaves were sent across the banking community. Wirecard, once a darling of the industry, was put into the spotlight after it was unable to pay the money it owed and was in serious trouble after a group of outside auditors identified $1.9 billion in cash missing on its balance sheet. This behavior comes with some serious consequences and the fallout will impact everyone. In Cathy’s latest XBIZ column, Segpay’s compliance team identified the top ways Wirecard’s mistakes will impact businesses around the world.
“Expect to see more scrutiny of operations,” said Segpay CEO Cathy Beardsley. “For example merchants now need to provide proof of processing not only to show fraud and chargeback rates, but to also to show what volumes they truly are processing.”
Card brand and acquirers are now digging deeper into the finances of banks, processors and payment facilitators which is why it is so important for merchants to work with a regulated entity. To learn more about what this could mean to you read the full column here.