interesting... opening merchant accounts under shell companies to process transactions for something completely different than what your merchant application says is a felony, yes? lots of shady operations used to do this back in the day until they started cracking down on it
Thats not what he said! He only said mention something different to the BANK when opening an account. Nothing shady about that, lots of companies are doing that including myself. Most banks even advice companies to make a global description about your company to avoid problems. For example they dont like adult companies so most of those companies open an account saying they have an internet company. It isnt a lie, its just not specific!
Secondly he doesnt say the merchant account is from the same bank. Most of the times merchant accounts are provided online through secondary parties and secondary banks...For example most banks in Holland dont even have a merchant department because nobody uses creditcards here only when they are forced when for example they go on holiday and need to book a hotel. 90% of europeans doesnt have or doesnt use a creditcard!
Actually, he did say that. Applying for a mid as a software company when you're really using it to process crypto currency purchases is not the same thing... why do you think he even said it like that? No low/regular risk merchant accounts will approve that shit because of chargebacks.
mis-coding transactions and lying on your merchant application is definitely not "legal". If the card companies find out that you are doing this they will kill your accounts instantly.
I put "legal" in quotes because I just don't know if it is a heavy fine levied by the card companies or a felony now. The adult industry has been doing this for years and it finally got cracked down on because of cross-sales and other misc. bullshit they pulled.