Page 36 - GS190202

Education

What can ISOs do? predominant market share. ISOs are in the best position
to understand merchant needs related to processing and
First, ISOs can serve an important educational role for identifying possible future claims. ISOs themselves may
merchants in informing them of the settlement and also have future claims against processors in the event of,
being ready to help merchants file claims when claim for example, arbitrary fees being levied on ISOs or passed
forms become available. The settlement established a site through to merchants.
merchants and ISOs can access directly to learn about the
latest developments from the settlement administrators Risk for ISOs
themselves: www.paymentcardsettlement.com/en.
Every time merchant services issues are in the news,
Second, ISOs can consider using one of a handful of third- merchant portfolios churn. Past events such as the PCI
party services that have been working on informing ISOs standard, TIN matching, big data breaches and other
and merchants and getting ready to help merchants sign merchant processing events have led ISOs to (rightly
up when the claim forms are finally available. One such or wrongly) solicit accounts using the news as a kind
service is Brownstone Recovery (http://brownstonerecovery. of hook for the sale. For example, some ISOs may call
com). Full disclosure: I have endorsed this service. merchants and, perhaps, bamboozle them into thinking
that the recent settlement has triggered a need to change
Third, ISOs can use this claim as an example of anti-trust processors etc. Seasoned ISOs will know about this. Those
laws working to help merchants avoid anti-competitive that are less seasoned should be aware of this possibility
behavior. ISOs sometimes throw up their hands and give and be the first to educate their merchants on this historic
up in the face of sometimes absurd or unfair payment moment for justice in payments.
rules, thinking they could never challenge them because
the networks and banks are simply too powerful to In publishing The Green Sheet, neither the author nor the publisher is
challenge. engaged in rendering legal, accounting or other professional services. If
legal advice or other expert assistance is required, the services of a com-
This settlement is an excellent example of the Sherman petent professional should be sought. For further information on this
Anti-Trust Act coming in to protect Main Street article, please contact Adam Atlas, attorney at law, by email at atlas@
against anti-competitive practices of entities that have adamatlas.com or by phone at 514-842-0886.