[Incbiz440]

I called an ISO shop today about becoming an independent referral partner they constantly post traditional this, that and everything on fb. They have a lot of great google reviews regarding their traditional "banking" services and also do a lot of MCA they say. Anyway, I asked about the bank line of credit and was told they have friends in banking positions they refer qualified merchants to letting them keep whatever fees they make originating the lines through bank for themselves while the ISO is charging another 10% of total line off the line itself when funded by way of ACH/PSF. Is this legit? Might be idk. Is it legit as well to be charging PSFs for regulated bank related products without a license etc? It was out of the box to me just trying to see if legitimate in general.

Referral fee from the bank, plus a PSF from the client? That's not out of bounds if it's not SBA. SBA caps fees at 3%/2%/.25% depending on loan amount and prohibits double dipping (can be paid from the bank or the client, but not both). Outside of that, to the best of my knowledge, banks can pay referral fees to ISOs, and ISOs can charge PSFs to the client. A bank or lender may have their own policy against PSFs or double charging in their agreements, but other than that I'm not aware of any general limitations for business lending.