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ChapterTitleEducation
Advantages of paperless agree- For example, a single contract sent to the wrong fax number is one thing. An
ments entire portfolio of agreements that is accidentally shared with a third party
could lead to compromising a lot more than one agreement.
Moving beyond specific industry
relationships, it is useful to have a On balance, I think paperless is the way to go. Merchants' business and personal
sense of the advantages of electronic activities, including social media, are increasingly online and even being used
contract formation for all parties as underwriting tools. Greater availability of paperless contract information
concerned. First, the whole contract would serve the acquiring industry well.
formation and acceptance process can
be reliably documented. Merchants
often complain of never having In publishing The Green Sheet, neither the author nor the publisher is engaged in rendering legal,
had a chance to see all the terms accounting, or other professional services. If legal advice or other expert assistance is required,
and conditions of their merchant the services of a competent professional should be sought. For further information on this article,
agreements; that problem is nipped please contact Adam Atlas, Attorney at Law email: atlas@adamatlas.com, phone: 514-842-0886.
in the bud by a well-built electronic
contract formation platform.
Similarly, when an ISO wants to sell
its portfolio, a buyer will look highly
on a portfolio with electronic records
of each merchant contract formed.
Second, speed and accuracy are
greatly enhanced in the paperless
format. ISOs know all too well the
hazards of recopying an address
five times in a set of paperwork.
Errors of recopying information are
often eliminated when the copying
is done electronically rather than by
hand. Finally, as soon as the contract
is formed, all parties can receive a
copy either by email or through a
dedicated link – putting everyone on
the same page at the same time.
Downside of going paperless
The downsides of paperless contract
formation can be largely mitigated by
fair mindedness and secure systems.
That said, it's worth considering why
you might choose to avoid paperless
contract formation. First, a security
breach of your contract management
system puts your whole portfolio at
risk – including sensitive information
on merchants such as Social Security
and bank information.
Second, the speed and convenience
might lead merchants or others
to accept terms without reading
them. That said, parties, such as
merchants, should be encouraged to
take the time to read the applicable
terms before accepting them. Some
paragraphs could even include
individual mandatory checkboxes
that must be checked to evidence that
the merchant has read the paragraph.
Third, user error can be amplified.
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53
Advantages of paperless agree- For example, a single contract sent to the wrong fax number is one thing. An
ments entire portfolio of agreements that is accidentally shared with a third party
could lead to compromising a lot more than one agreement.
Moving beyond specific industry
relationships, it is useful to have a On balance, I think paperless is the way to go. Merchants' business and personal
sense of the advantages of electronic activities, including social media, are increasingly online and even being used
contract formation for all parties as underwriting tools. Greater availability of paperless contract information
concerned. First, the whole contract would serve the acquiring industry well.
formation and acceptance process can
be reliably documented. Merchants
often complain of never having In publishing The Green Sheet, neither the author nor the publisher is engaged in rendering legal,
had a chance to see all the terms accounting, or other professional services. If legal advice or other expert assistance is required,
and conditions of their merchant the services of a competent professional should be sought. For further information on this article,
agreements; that problem is nipped please contact Adam Atlas, Attorney at Law email: atlas@adamatlas.com, phone: 514-842-0886.
in the bud by a well-built electronic
contract formation platform.
Similarly, when an ISO wants to sell
its portfolio, a buyer will look highly
on a portfolio with electronic records
of each merchant contract formed.
Second, speed and accuracy are
greatly enhanced in the paperless
format. ISOs know all too well the
hazards of recopying an address
five times in a set of paperwork.
Errors of recopying information are
often eliminated when the copying
is done electronically rather than by
hand. Finally, as soon as the contract
is formed, all parties can receive a
copy either by email or through a
dedicated link – putting everyone on
the same page at the same time.
Downside of going paperless
The downsides of paperless contract
formation can be largely mitigated by
fair mindedness and secure systems.
That said, it's worth considering why
you might choose to avoid paperless
contract formation. First, a security
breach of your contract management
system puts your whole portfolio at
risk – including sensitive information
on merchants such as Social Security
and bank information.
Second, the speed and convenience
might lead merchants or others
to accept terms without reading
them. That said, parties, such as
merchants, should be encouraged to
take the time to read the applicable
terms before accepting them. Some
paragraphs could even include
individual mandatory checkboxes
that must be checked to evidence that
the merchant has read the paragraph.
Third, user error can be amplified.
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53
