At WePay, we often talk about ‘aggregation.’ Most often, we’re selling WePay against the idea of aggregation - against a potential partner setting up their own internal payments operation and aggregating funds into a single account. That’s not necessarily an easy concept to understand, though. Here, WePay’s General Counsel, Susan Dunn, takes a closer look at what exactly defines an aggregator.
Payments is a highly regulated industry. Not every flow of funds that is possible as a technical matter complies with applicable laws and regulations.
Take the ability to accept credit cards as an example. These days almost anyone can get a merchant account and accept credit cards as payment. If you read the fine print, however, you’ll discover that the card networks (Visa, MasterCard, and Discover) impose significant restrictions on how a merchant account can be used. Violate those restrictions, and you can incur thousands of dollars of fines and have your merchant account revoked.