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A difficult process For its part, the FDIC, too, was fair. The FDIC is charged
with protecting the value of the assets it takes over. Its
The officer in charge was a smart, honorable and dedicated representatives did so consistently and with deliberation.
executive. He had ample experience at the FDIC. His They wanted the operations and our transition to go as
request was that we continue to run our business, not smoothly as practical. As mentioned, however, bank
take on exceptional risk and not have any reimbursement take-overs were not common, and the FDIC did not have
expense for alcohol—try courting ISO's and agents without experience managing merchant services.
taking them out for a drink!
Being an employee of a company owned by the FDIC
He continued to work with suitors to purchase the was odd. We suddenly and overnight had new health
company. We had several credible suitors, but the priorities care and payroll processes. The common services such as
for the FDIC were different from a private seller. Surety of HR and IT, which were previously provided by the bank
closure was tantamount. holding company, were gone. Approving unique credits
was difficult and, overnight, we lost the faith of our sales
It was extremely difficult maintaining staff morale. We contractors.
had no assurance of our future other than we would be
sold. We did make some difficult decisions along the way, The experience was difficult, trying and unnerving. I can
including laying off the team members supporting the imagine well what other merchant acquirers within our
branches (as the branches no longer existed). industry might be going through. Godspeed.

After nearly four months of working for the FDIC, As founder of Humboldt Merchant Services, co-founder of Eureka
Humboldt Merchant Services was purchased by Moneris Payments, and a former executive for such payments innovators as
Solutions. It was fortunate for all of us working, as WePay, a division of JPMorgan Chase, Ken Musante has experience in
Moneris kept the team largely intact as they worked all aspects of successful ISO building. He currently provides consulting
through integrating the business. Most staff did need to services and expert witness testimony as founder of Napa Payments
find alternative jobs in time, but it allowed for an orderly and Consulting, www.napapaymentsandconsulting.com. Contact him
migration, and Moneris treated folks fairly. at kenm@napapaymentsandconsulting.com, 707-601-7656 or www.
linkedin.com/in/ken-musante-us.

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