Why does it need PayRate42?

The international and borderless payment industry is the infrastructural backbone of the CyberEconomy. There are no “world regulators” or “world supervisors” watching over this industry and its compliance. Their national borders bind regulators; they do not bind payment providers.

In the fight against fraud, cybercrime, and money laundering, however, high-risk payment processors (HRPP), in particular, need to be monitored. PayRate42 is positioned as a CyberFinance rating agency with the mission to protect merchants and consumers.

Compliance is the name of the game

Many digital payment processors live in the long shadow of the much applauded and admired FinTech universe with household names like TransferWise, Revolut, Monzo, Starling Bank, or N26 at its center. Most of these FinTech superstars are licensed under one or more regulatory regimes and are overseen by the relevant regulators. This is not true for high-risk payment processors (HRPP).

Typically, a high-risk business is considered too risky for traditional financial institutions and major credit card companies to allow you access to their services. This is why HRPPs are important for a large part of the CyberEconomy.

The HRPP scene operates largely unregulated outside of regulatory regimes. Even regulated HRPPs often operate outside the regulatory framework through offshore companies and affiliates. Their services are not necessarily compatible with applicable laws and regulations in all jurisdictions.

In many cases, HRPPs act dubiously or even as scammers themselves. There are many known cases where HRPPs rip off their customers, withhold money contrary to their terms or agreements or even extort money. Due to their business’s nature, high-risk customers have difficulty claiming their rights through lawsuits or the courts. HRPPs know this in many cases.

Identifying, Evaluating, and Rating

PayRate42 aims to provide transparency of the entire scene by identifying, evaluating, and rating its participants. We enable payment processor clients to submit listings, ratings, and reviews and thus have a voice when dealing with them.

PayRate42 defines itself as a private compliance platform for the global payment industry. It is aimed at regulators, potential partners and clients, and clients’ clients (Know-Your-Clients-Clients or KYCC).

HRPPs can list or claim their business and show themselves to the public. Too often, HRPPs operate in the darkness of the Internet and do not disclose their beneficial owners and managers. Upon listing in the HRPP report, they will be subjected to KYC by our team.