Let me guess, they go to you and you or the company you work for would issue cash. Than the "swipe", you guys would swipe it as "retail" swipe and convert it into either installment plan with interest or interest free.
Btw, how does the company report the "services" they offer to the acquiring bank when the apply for the merchant terminal.

p/s: Banks are starting to act on it by terminating this sort of merchant service. It's not fraud but it's violating the T&C. Hope your company doesn't get investigate though........