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Education
do so, some processors will inform their agents if a
given merchant is already doing business with them.
Some will also provide information about whether the
merchant was signed directly by them or through an
ISO of theirs.
Legal ease: This information will help an MLS to decide if an
account should be solicited and, if so, what kind of
pitch might be best.
3. Read your nonsolicitation clauses
Suppose you are promoting the services of Acme
Processor. A well-drafted nonsolicitation clause in
your agent agreement will clarify whether you are
Moving merchants: allowed to re-sign a merchant who is already party
to a merchant agreement with Acme Processor and its
bank. However, many clauses are not well-drafted.
Great support orbiting The main purpose of a nonsolicitation clause is to
the hand that feeds? prevent agents from soliciting merchants in order to
move them to another bank. But the clause (together
with the rest of the agreement) may permit an agent
By Adam Atlas to re-sign a merchant who is already processing with
a given processor or bank.
Attorney at Law
Distinguish between what your nonsolicitation clause
ooner or later every merchant level salesper- says about specific merchants you have referred to
son (MLS) will want to sign a merchant who the processor, as well as the much larger group of
is already procuring services from the MLS's all merchants procuring services from the processor.
S processor. Some companies welcome this type You may be allowed to re-sign merchants from the
of portfolio churn; others consider it a breach of the agent larger group, but perhaps not those you brought to the
agreement. processor yourself.
Here are seven tips to help you know your rights Be careful not to breach a nonsolicitation clause in
and obligations relative to soliciting your processor's your agent agreement. Processors are especially
merchants. sensitive when agents do this – and rightly so. Note
that some processors have so much market share that
1. Ask your merchant they are legally prohibited from preventing their ISOs
Before you fully engage in the sales process, ask and MLSs from soliciting into their portfolios.
merchants who provides their bankcard processing. 4. Price the playing field
Merchants are often confused about who is handling
their processing, but you should gather as much If your agent agreement permits you to re-sign
information as merchants are able (and willing) to merchants who are already with your processor,
share. Note that a large processor logo may appear on ask whether your processor is set up to process
a merchant's POS device, but the merchant may have applications from its own merchants.
been signed by an ISO soliciting for that processor –
perhaps even the ISO that pays you as an agent. During that conversation, try to get a feel for the price
range other MLSs work within when they compete
It might help to google the merchant, search local with you for your merchants. It's helpful to know what
business directories and make phone calls to identify other people have in their sales toolbox.
the merchant's payments industry relationships.
Clarifying a merchant's status will help you adapt 5. Ask your processor for alerts
your sales pitch accordingly. Some processors will inform MLSs when another
2. Ask your processor agent attempts to re-sign one of their merchants. Sup-
pose Agent Albert signed Joe's Pizza with Acme Pro-
It behooves processors to know whether their agents cessor a couple years ago. Then, along comes Agent
are soliciting their merchant base. And when asked to Ben, who is also an agent for Acme. Agent Ben ap-
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