I would think they had some reason to cap the buy-rate, but they should let him know why so everyone is on the same page. Still, a Lender should not play God with someone's livelihood. It is the ISO's client. He brought the Merchant to the table and did all the work. Who knows how much he spent in marketing to acquire this Merchant. Maybe it was through a referral partner. If they want to cap it then they should have just given him __ points on the ISO Agreement in the first place.

If there is another Lender that could potentially give similar terms, I would take it to them. If the daily pull exceeds the percentage they can take, they should lower the buy rate a few points. If I was the ISO in this case, sure, I might want to "see it from the Lender's point of view" just so I can understand and possibly avoid it in the future, but I'd be very unhappy if they arbitrarily capped it at 5 or 6 points. By doing so, they are not honoring their end of the agreement.

Situations like this are what cause a rift between ISOs and Lenders. They don't want us to stack or bring him to someone else, but they only pay 50% of the original commission on a renewal for the NET amount. They renig last second for BS reasons and make you look like a schmuck, etc, etc. Buy Rates are created by Lenders. We are trying to make a living on a system created by them.

In all fairness, we don't know the full story, but some middle ground should be found here....maybe add a 2-3 point bonus