Green Sheet

Q & A

Three questions:

1. If an ISO has someone working for them that has a criminal background (felony), are they required to notify their bank or processor, or is it illegal for them to work for the ISO?

2. What are the rules and regulations of Visa/MC about hiring a person in this industry that has a felony criminal background?

3. If you find out that a person working for an ISO has his wife on the incorporation papers, is this legal, or do they have to notify Visa/MC, bank or processor that the felon is a high-ranking executive of the ISO with his spouse owning a portion of the corporation doing business as an ISO?

Thanks,

Mike Daily

Mike,

Three answers:

1. Most ISO agreements do not require this kind of disclosure. The answer lies in the wording of the ISO agreement.

2. This would require a lot of time to look into. An attorney would require a fee to look into it.

3. Generally speaking, most ISO agreements would consider a material misrepresentation, such as falsely identifying the principals in the business, as grounds for default and termination. However, the true answer to this question lies in the wording of the ISO agreement.

Editor

Getting Started

How do you become an ISO or service provider?

Linda Sue

Linda Sue,

Check out our Web site, www.greensheet.com. There is a lot of information in the MLS Forum and in our Industry FAQs. Also, check out the section on our Web site called "Knowledge is Power." If you are not yet a subscriber, our publication is free to the Merchant Level Salesperson. You may subscribe online and register for our Forum at the same time.

Editor

The Hunt for Visa/MC Rules

I need help locating the Visa/MC rules and regulations with regard to ISOs, misrepresentations of ISOs/agents, fraudulent statements made to agents by an ISO, discrimination, or contract violations. I sure could use your help.

Mike

Mike,

The Visa and MasterCard Rules and Regulations are distributed to the associations' member banks only. Read through the FAQs on our Web site and post your request on the MLS Forum. One of our readers may be able to assist you.

Editor