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Payment rules

Transaction laundering

Payment arrangements that conceal the actual seller or unapproved sales activity.

GlossaryUpdated 2026-09-24
01

Identify the seller

Confirm who is the actual seller and merchant of record.

02

Verify authorization

Ask which provider approved the arrangement and how the business and products are underwritten.

03

Keep disclosure clear

A registered facilitator arrangement is different from one that hides the seller or unapproved activity.

The short answer

Transaction laundering conceals the actual seller or transactions by routing sales through a payment arrangement that was not approved for that activity.

A registered payment-facilitator arrangement is different. The key questions are whether the seller is disclosed and the activity is authorized and underwritten.

Questions to ask about an offered checkout

  • Who is the seller and merchant of record?
  • Which bank or provider approved the arrangement?
  • How is your business identified and underwritten?
  • Are all actual products disclosed?
  • Who holds funds, manages disputes and carries contractual liability?

Do not conceal the business

Using someone else's account to hide your products or seller identity can violate provider and network rules and create serious legal risk. Have unclear arrangements reviewed before using them.

Scale's role

We make introductions. We do not run a buyer's sales through our merchant account or act as a payment facilitator.

A useful next step

Know the arrangement before using it.

Get unclear checkout structures reviewed before accepting them. Scale makes introductions; we do not run a buyer's sales through our account or act as a payment facilitator.

Read the PayFac definition →
Your next step

Explore payments introductions

See what the service includes and how to take the next step for your business.