No, you're wrong. Collusion fraud is (generally) when a merchant uses stolen credit cards to process payments then absconds with the money before the customer disputes the charge.
What the parent is describing is PayFac (payment facilitator) which is where the card network and acquirer are aware of the merchant/sub-merchant relationship. You can determine if a payment is through PayFac by the tell-tale asterisk after the first 2 characters on the statement descriptor. For example, Square transactions process as "SQ*[Merchant Name]"
You are spreading misinformation. Collusion fraud occurs when you are approved for selling ebooks and you endup selling e-cigs, for example. Has nothing to do with using stolen credit cards, which obviously is a crime.
Source: 12 years of experience processing cards in CNP/MOTO environment.
What the parent is describing is PayFac (payment facilitator) which is where the card network and acquirer are aware of the merchant/sub-merchant relationship. You can determine if a payment is through PayFac by the tell-tale asterisk after the first 2 characters on the statement descriptor. For example, Square transactions process as "SQ*[Merchant Name]"