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CompanyProfile

ISO/MLS contact:
Kevin Mendizabal
Director of Financial Institutions
405-290-5610, 405-290-5777
kmendizabal@fratesins.com
www.fratesinsurance.com

Protection, growth, new revenue streams

evin Mendizabal, Director of Financial in place, they know within 30 seconds that I speak their
Institutions at Frates Insurance & Risk language," Mendizabal said. "We have experience to align
Management, believes EMV (Europay, those requirements that are either posted by the PCI
K Mastercard and Visa) safeguards aren't Council, a bank or a payment processor to exactly what
enough to protect the U.S. payments community from their needs are."
fraud. This includes acquirers, ISOs, payment proces-
sors, facilitators, gateways, and other merchant services Types of insurance
providers. He pointed to online, card-not-present (CNP) Mendizabal said Frates has a policy for just about
transactions in particular, noting that CNP merchants every payments-related need, including insurance on
"are still going to be liable for the loss from stolen cards chargebacks and cyber transactions. For example, Frates
or counterfeit cards." offers the Uncollectible Chargeback insurance policy,
which pays ISOs for chargeback losses when a merchant
Mendizabal noted that fraudulent charges for CNP is unable to pay. It also offers Web Merchant Guard, which
merchants have soared in the last two years. "The way protects individual merchants from charges stemming
our insurance policy is designed is to respond as a safety from fraud for CNP transactions.
net, just so a merchant cannot be put under and made
bankrupt because they were hit with a large claim of "I consider us a one-stop shop in that we offer every type
fraud," he said. of insurance that a company needs," he said. "We cover
Coverage for payment processing their first-party costs and any liability that they would
have. And when I say liability, I mean being sued for
Frates began in 1924 and specializes in insuring the damages. We put that in place for the banks, the ISOs,
payments industry for all types of liability, including the payment processors ‒ anyone who is contractually
fraud, data breaches, and chargebacks. It is part of required to have that in place, and that is pretty much
Acrisure LLC, the 13th largest national insurance broker one of the main policies a company wants to see in place."
in the United States, Mendizabal said. Begun as a single
business location, Acrisure has grown today into a New growth, revenue streams for clients
national company with 170 locations and over $1 billion in The company also provides coverage to payment
annual revenues. Before joining Frates, Mendizabal was facilitators seeking to do business beyond U.S. borders.
an underwriter for AIG's financial institutions division. "We have clients that are international, as well," he
said. "Because we are part of Acrisure, it gives us the
By focusing on the payments industry, Frates can opportunity to offer insurance either to internationally
customize policies to address Payment Card Industry based companies or companies with international
(PCI) Data Security Standard (DSS) compliance needs. operations or merchants that are outside of the U.S."
According to Mendizabal, in the majority of cases brought
against payment processors and ISOs by the Federal Mendizabal said Frates also helps its customers grow.
Trade Commission and Consumer Financial Protection "What I see for the future for Frates and our involvement
Bureau, financial damages could have been covered had in the payments industry is not just being an insurance
the companies been properly insured. broker that offers policies, but also understanding our
clients' needs to generate revenue," he said. "And that's
Payments expertise also facilitates communication. what really gets me going ‒ putting the solutions together
"When I talk to a client who either has an existing for them, knowing I can help leverage insurance for my
insurance broker or agent that he is working with, and clients to help their business grow and as a revenue
he is just so frustrated trying to have his insurance put stream."

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