A “bust-out” is a fraud scheme where someone establishes or acquires a credit account, builds a positive payment history and credit profile over time, and then maxes out the card or line of credit with no intention of repaying the debt. Accounts associated with this type of fraud are known as bust-out accounts.
Merchants that process a significant portion of their transaction volume on bust-out accounts will likely lead to increased scrutiny from card brands, acquiring banks, and payment processors. High levels of bust-out activity may lead to additional monitoring (like Mastercard’s QMAP), reserve requirements, account restrictions, or termination of merchant accounts.
AltoPay is committed to helping you maintain a stable, reliable payment strategy. Implementing our fraud detection solutions can help identify and block activity related to bust-outs, reducing your risk exposure.
