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September 9, 2013 • Issue 13:09:01eptember 9, 2013 • Issue 13:09:01
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on reps, merchants – Part 1
on reps, merchants – Part 1

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We wish to thank all board members who participated e wish to thank all board members who participated
and
and hope their answers offer you valuable insights.hope their answers offer you valuable insights.
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Tom Waters, CPPom Waters, CPP
Bank Associates Merchant ServicesServices
Bank Associates Merchant
1. Any successful system requires checks and balances. y successful system requires checks and balances.
1. An
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The bigger a company gets, however, the more difficult he bigger a company gets, however, the more difficult
i it can become to keep all new clients entirely satisfied. t can become to keep all new clients entirely satisfied.
Merchant complaints will occur regardless of how dili-erchant complaints will occur regardless of how dili-
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T number of actions against payment companies ber of actions against payment companies i ing how to recognize patterns of undesirable behavior ng how to recognize patterns of undesirable behavior
h
he Federal Trade Commission has brought a e Federal Trade Commission has brought a
gently customers are serviced. What is important is learn-y customers are serviced. What is important is learn-
gentl
num
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in recent months, accusing them of promulgating n recent months, accusing them of promulgating
and learning
and learning how to handle complaints that may stem how to handle complaints that may stem
T and aiding deceptive sales practices. and aiding deceptive sales practices.
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from bad hires.rom bad hires.
Depending on the circumstances, the allegations pertain Depending on the circumstances, the allegations pertain A good rule of thumb is to keep an ethics clause in the good rule of thumb is to keep an ethics clause in the
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to the sales schemes of ISOs themselves or the sales to the sales schemes of ISOs themselves or the sales a
agent contract. Ethics statements can allow an ISO to gent contract. Ethics statements can allow an ISO to
practices of the merchants they serve. All appear to practices of the merchants they serve. All appear to ar
arbitrate complaints on a case by case basis and penal-bitrate complaints on a case by case basis and penal-
incorporate telephone contact with prospects to either set incorporate telephone contact with prospects to either set i ize deceptive agents by forcing them to own 100 percent ze deceptive agents by forcing them to own 100 percent
appointments or close sales.appointments or close sales. of refunds or credits. If an agent is alarmed by a clause f refunds or credits. If an agent is alarmed by a clause
o
that regulates their potentially harmful behavior, they are hat regulates their potentially harmful behavior, they are
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Based on the related FTC statements, it is clear that some Based on the related FTC statements, it is clear that some probably not an ideal candidate. ISOs can mitigate their robably not an ideal candidate. ISOs can mitigate their
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of the defendants' actions, if substantiated, are reprehen-of the defendants' actions, if substantiated, are reprehen- expenses while keeping their clients happy with such a xpenses while keeping their clients happy with such a
e
sible. When it comes to merchants' actions, however, the sible. When it comes to merchants' actions, however, the cl
clause.ause.
level of ISO and processor responsibility seems more dif-level of ISO and processor responsibility seems more dif-
ficult to discern.ficult to discern. Even if an et
Even if an ethics clause is out of the question, it is not hics clause is out of the question, it is not
entirely difficult to spot a pattern of poor behavior and ntirely difficult to spot a pattern of poor behavior and
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To help shed light on this issue, we asked our Advisory To help shed light on this issue, we asked our Advisory regulate a problematic agent. If a merchant becomes egulate a problematic agent. If a merchant becomes
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Board the following questions:
Board the following questions: i incensed and an ISO's primary sales tactic is to benefit, ncensed and an ISO's primary sales tactic is to benefit,
not deceive, management should refund the client – even gement should refund the client – even
not deceive, mana
1. What are you doing to train and monitor your 1. What are you doing to train and monitor your if it means maintaining the account at a negative revenue f it means maintaining the account at a negative revenue
i
sales force to ensure everyone who represents your
sales force to ensure everyone who represents your b
balance.alance.
business is above board? business is above board?
I ISOs spend so much money creating a positive image SOs spend so much money creating a positive image
2. How do you evaluate your merchant customers to
2. How do you evaluate your merchant customers to about their brand that satiating an irate merchant to keep heir brand that satiating an irate merchant to keep
about t
ascertain that their sales and marketing practices ascertain that their sales and marketing practices
are indeed legal?
are indeed legal?
Contributed articles inside by:buted articles inside by:
Contri
3. Could this scrutiny on the part of the FTC lead to 3. Could this scrutiny on the part of the FTC lead to
federal regulation of business-to-business (B2B)
federal regulation of business-to-business (B2B)
Br
contracts, such as a three-day period in which a Brandes Elitch ........................................................ 28andes Elitch ........................................................ 28
contracts, such as a three-day period in which a
Dale S. Laszig ....................................................... 48
merchant can renege on a signed contract? If so, Dale S. Laszig ....................................................... 48
merchant can renege on a signed contract? If so,
Michelle Thompson ................................................ 54
how might that affect our industry? Michelle Thompson ................................................ 54
how might that affect our industry?
Nancy Drexler ....................................................... 58
Nancy Drexler ....................................................... 58
Following are a portion of the answers we received. The Michael Gavin ...................................................... 60
Following are a portion of the answers we received. The
Michael Gavin ...................................................... 60
remaining responses will appear in a subsequent issue of
remaining responses will appear in a subsequent issue of
TOC on page 3
The Green Sheet.
The Green Sheet. TOC on page 3
See Merchants - Part 1 on
See Merchants - Part 1 on page 43page 43