Two of the major card networks recently released revised standards for high-risk file locker merchant registration. While file lockers (also known as cyberlockers or cloud storage) can be legitimate, there are also rogue file lockers that are used to host illegal or brand-damaging content. Just one piece of illegal content can cause a file locker to be considered rogue. Card networks are now requiring that acquirers register any file locker merchant or submerchant that exhibits high-risk behavior. Acquirers must closely and continually monitor the performance and activities of these high-risk merchants and submerchants to ensure they are complying with all applicable laws and regulations.
File lockers go by many names: cyberlockers, cloud storage, file-hosting services, cloud-based storage services, and online file-storage providers, to name a few. Regardless of what you call them, the business model is the same: users create accounts, save files to their accounts, and can then share these files with others. Many use these accounts to provide friends and family access to photos or video, while others may use it to store business documents.