<prompt> Human: Hey all, a friend had propositioned me with an opportunity to make 1000 a month, by opening an LLC under my information to process chargebacks from another company. Im already convinced its a scam, Id just love to know what their aim is. The following is the email they sent me. If anyone has insight its be appreciated!Hi J, Yes, Davis mentioned that you would be reaching out. I understand he gave you kind of an overview of what we do so Ill go into some more detail. I think that it is usually a good idea to have a phone or in person conversation about it as well because there are some logistics best explained verbally but this will at least get you an idea. So what we do- were an e-commerce company and we sell health and beauty products exclusively online. Dont worry, Im not going to ask you to sell anything. The opportunity for you- you can make somewhere in the area of 1000 per month for about a year. What it means to you- being that we are an e-commerce company everything is sold over the internet, billing peoples credit cards. Most of our products are sold on a recurring basis after a trial period. Nothing dissimilar to something youve signed up for before when its a free trial and then youre billed 29.95 per month or whatever the case may be after. Our business model is the same. With that we incur a certain amount of charge backs or people that return the product after the trial period. Our retention rate is around 65-70 just for reference purposes. Additionally merchant processors only allow for a small amount of processing per month under each account. Most are in the area of 50k per month. For reference purposes we run upwards of 2M per month so you can clearly see the discrepancy that this creates in terms of our sales versus what were able to process through our credit card merchant processors. Beyond that most merchant processors have a limit on how many charge backs an account can incur per month so we run up against this challenge as well. Your role in all this- Part of our business is getting other signers, like Davis, that allow us to open merchant processing accounts under their name via an LLC that we establish. This does not affect your personal credit in anyway. In fact, merchant processors run their own type of credit check and this is done by reviewing bank statements to look for a pattern of irresponsibility in the form over drawing accounts, etc., and tax returns to verify income. This is how they determine if someone is qualified rather than running a credit check. The process is pretty simple on your side. I would get a copy of your drivers license or passport, 3 months of bank statements and 2 years of tax returns. I would then get an LLC set up for you. I would also set up a bank account for the LLC. Once I have the LLC and bank account established, we submit your information to the merchant processors to get the accounts set up. Most people get 4-5 accounts approved. During the application process I may need to ask you for updated bank statements, but for the most part its pretty straight forward. Once all the accounts are approved they are attached to a campaign and revenue will start flowing through them. There will be a number of applications for you to sign that I can email you and you can print, sign and scan or I can meet you somewhere and you can sign them and Ill scan back; whatever is easiest for you, really. I pay my signers 1 of the net revenue run through their accounts. Math is pretty simple, if we run 1M through the accounts- which is typical- you get 1000 for essentially signing applications and sending me information. If more is run through the accounts then you get more but most signers are between 1000 and 1500 per month. Campaigns usually run for about a year so for a year youll be making that money. The reason it goes for about a year is thats about when we start to exceed the charge back threshold and the accounts are closed down. This is not a negative thing. This is the normal life of a merchant processing account and again has no impact on you personally or your credit. Merchant Processors run off of their own credit system once the accounts are set up. At the end of the year we would give you a 1099 for tax purposes. Since this is 1099 youll want to set a couple hundred bucks aside as you are likely to owe some money at the end of the year. Risks- there is very low risk with this since everything goes through the LLC. Additionally, with merchant processors, every transaction that is run they keep 10 of in reserves to cover returns and charge backs. This is their policy and no one can touch that money; it is just there to cover returns and charge backs. Again, simple math, if we run 1M through your accounts in a month, 100k was kept in reserves so the likelihood of charge backs or returns exceeding 100k is incredibly low and has never even remotely been close to happening. Second risk, you can go on a TMF which is a Terminated Match File. We have been doing this for quite some time and have never had anyone go on this list but what it means is that you would not be able to get merchant processing accounts with the banks we use for another business down the line. This is an extremely low risk and like I said weve never had any of our signers go on it. Lastly, the why question. I know this sounds strange and frankly it is. Before I was a signer and ultimately a partner it sounded so weird but now that Ive seen this industry this is how most e-commerce companies work. Think about it this way- you started a small business out of your garage selling a product on a trial basis and you are accepting credit cards online. Your business is doing well and your sales are increasing however with increased sales you get increased charge backs and returns. What happens when your returns exceed the threshold that your merchant processor allows? You are dead in the water because you can no longer accept credit card payments. A lot of name brand companies youve heard of have struggled with merchant processing because of these rules. Proactive is the biggest one that has had trouble because they get so many returns and the merchant processor closes their accounts. Its certainly not the ideal way to go about it for us and if we could just have all the accounts we needed without these parameters we wouldnt be doing this. Unfortunately thats not the nature of the business so thats why we find signers to help us along the way. We make sure everything is done the correct way and you will have a copy of all paperwork you sign. Weve been doing this for many years and have had hundreds of signers and never an issue. The bottom line is there is very little, if any risk to you regarding the whole process; I manage everything so Ill be your only point of contact and once all your accounts are approved youll just get a check from us. I hope that all makes sense but please let me know if you have other questions or if youd like to have a phone conversation. Additionally, Im not sure if Davis provided it to you but Ive attached a sheet that kind of goes over the process. Dont worry about the language saying that you will set up the account- Ill do that.  <response>: I stopped reading at drivers license, bank statements, and tax reports. If you arent familiar with this company and the opportunity seems to good to be true, then dont give them your name, address, social security number, and routingaccount numbers. 