[Lmonus]

I personally believe commissions should only be clawed back in Fraud cases when a merchant steals the capital and stops payment on the funder within the first week. That's clearly malicious and im sure a broker would understand that. Although the majority of ISO Agreements have some form of Clawback clause in them, im not a fan of taking an ISO's commission back and have only done so twice in the last 3 years.

[NoBigDeal]

I personally believe commissions should only be clawed back in Fraud cases when a merchant steals the capital and stops payment on the funder within the first week. That's clearly malicious and im sure a broker would understand that. Although the majority of ISO Agreements have some form of Clawback clause in them, im not a fan of taking an ISO's commission back and have only done so twice in the last 3 years.

So, I'm curious, if you fund a merchant and then they default pre30 days and it gets back to you (from the merchant or however) that the broker is the one who carroted the merchant to take your deal and promised a LOC or some other non-existent loan to the merchant with good payment history after 10 payments, what would you do? what's your thought process?

[RickyR3712]

So, I'm curious, if you fund a merchant and then they default pre30 days and it gets back to you (from the merchant or however) that the broker is the one who carroted the merchant to take your deal and promised a LOC or some other non-existent loan to the merchant with good payment history after 10 payments, what would you do? what's your thought process?

Black list iso. Just like you have to underwrite merchants, you have to underwrite iso.

[pcfunder]

Black list iso. Just like you have to underwrite merchants, you have to underwrite iso.

You would black list ISO and not clawback?

[RickyR3712]

You would black list ISO and not clawback?

Unless the iso agreement has a clawback.If you have solid proof than i will say sue.

[Lmonus]

Black list iso. Just like you have to underwrite merchants, you have to underwrite iso.

This is a fact. Learn from the mistakes and find a better source of business.

[Lmonus]

So, I'm curious, if you fund a merchant and then they default pre30 days and it gets back to you (from the merchant or however) that the broker is the one who carroted the merchant to take your deal and promised a LOC or some other non-existent loan to the merchant with good payment history after 10 payments, what would you do? what's your thought process?

I would blacklist the ISO from our company and call it a loss. Its not worth trying to clawback commission from a scammer, its probably a sweep account he is getting his commissions deposited into anyways.

[NoBigDeal]

I would blacklist the ISO from our company and call it a loss. Its not worth trying to clawback commission from a scammer, its probably a sweep account he is getting his commissions deposited into anyways.

I'd at least try to collect it back, and once they send back the commission, then you can cut them off and call them all the names you'd like.

[Chambo]

I personally believe commissions should only be clawed back in Fraud cases when a merchant steals the capital and stops payment on the funder within the first week. That's clearly malicious and im sure a broker would understand that. Although the majority of ISO Agreements have some form of Clawback clause in them, im not a fan of taking an ISO's commission back and have only done so twice in the last 3 years.

what's alos messed up here is that if the fund DOES collect the money late on, they don't pay you the commissions, even though they got their money

[Lmonus]

what's alos messed up here is that if the fund DOES collect the money late on, they don't pay you the commissions, even though they got their money

If a funder claws back commission and the merchants gets to the finish-line without having to include a 3rd party collection team, then commission should be re issued to the iso.

[Chambo]

If a funder claws back commission and the merchants gets to the finish-line without having to include a 3rd party collection team, then commission should be re issued to the iso.

SHOULD BE....and ARE....are tow different realities

[Lmonus]

SHOULD BE....and ARE....are tow different realities

Very true.

[OC Funder]

If a funder claws back commission and the merchants gets to the finish-line without having to include a 3rd party collection team, then commission should be re issued to the iso.

OP is in a tough spot there because he'd be banking on funder being honest about collection efforts AND submitting ISO to be honest about re-issuance. OP: kiss that commission goodbye. Fund your way out of it (and work your way towards direct relationships).