[JSL23]

I agree J, they feel they do not need the ISO at that point to maintain the client.

Yup, that's kind of what I figured. That is just so......penny wise and dollar foolish. Ok, you make a few dollars more on the renewal, but face the possibility of losing a good ISO and/or the Merchant. If I know I am taking a 50% loss on my commission, sorry, but I am sending them elsewhere. Maybe a few years ago there were only a few Lenders in town, but now they are popping up everywhere. You can pretty much always find an offer just as good(or better) than the renewal on the table. Your client gets what they need without sacrifice and you get the full commission. Another option, as you mentioned earlier is to just get them a 2nd right before renewal. You guys don't like getting stacked on, do you?

[Quickfunder]

I just inquired with another bank before I submitted a deal. They cautioned they want to cap the commission on a deal this large. Which is a no. I just called 3 of our banks last week, all of whom said NO CAP.

I also asked the Account Manager at this same bank for the rates and corresponding platforms. His response was basically:

"Well, we've done deals at this rate over this term and then I saw another at this rate over this term..."

That's great. But you are losing my business since you won't just tell me the damn base buyrates on your programs. I'm assuming Account Managers make something on our deals ... but they also cost themselves business on things like this. He could have just had a huge deal but instead can't tell me what to expect...

[MTY MSI]

To know what your buyrate is before even submitting a deal (unless a reduced buyrate is requested to win the deal which should be agreed upon prior to submission), to get paid a full commission on renewals, not to be in an agreement that requires 1st right of refusal on every submission and not to be required to resubmit a funded merchant into perpetuity are all easily obtainable from some funders. However I would say a majority and especially the larger funders do not meet that criteria, some of them none of it. It is obvious that plenty of funds to lend are available and under those circumstances funders are competing against each other to gain ISO submissions so at some point all but most likely the largest funders will compete on those four points. The largest because of their books of business & internal sales forces may not compete but going forward at least under present industry circumstances competition will force all but the largest to compete. An example would be buyrates which never existed several years ago, once they were introduced more funders started offering them. In our segment (the ISO segment) competition has and will continue to give us better terms. I also note that there are a number of funders who post on these forums that do not pay full commission on renewals yet not a single one has commented in defense of this practice. My conclusion is that's because it's an indefensible position and they know it.

[GRP Funding]

For those getting paid 100% on renewals, are you handling them yourselves? Or is the funding company taking care of them for you? How does the dollar amount of your 100% new commission compare to the dollar amount of your 100% renewal commission? Same upsell? Does the renewal team at the funding company maximize the upsell if the ISO is keeping 100% of it?

[JSL23]

For those getting paid 100% on renewals, are you handling them yourselves? Or is the funding company taking care of them for you? How does the dollar amount of your 100% new commission compare to the dollar amount of your 100% renewal commission? Same upsell? Does the renewal team at the funding company maximize the upsell if the ISO is keeping 100% of it?

I wouldn't expect 100% otherwise.

[@jeannette]

For those getting paid 100% on renewals, are you handling them yourselves? Or is the funding company taking care of them for you? How does the dollar amount of your 100% new commission compare to the dollar amount of your 100% renewal commission? Same upsell? Does the renewal team at the funding company maximize the upsell if the ISO is keeping 100% of it?

At Retail Capital, we notify the ISO that their merchant is ready for renewal and ask for the last few months of bank statements. The renewal almost always qualifies for more than the original funding. We make the offer to the ISO to present to the merchant with full commission included. If the ISO would like to buy down the rate they are more than welcome. If the ISO would like us to reach out to the merchant we will, in most cases the ISO wants to remain in control of the conversation. The ISO keeps 100% of the renewal commission even if our renewal team is asked to facilitate the renewal internally.