How do you ACH broker fees?

**BobSchmuck** · 11-10-2015, 12:48 PM

Fellas,

As you may know, its so tough to get approval for ACH pulls with any company when they hear you are related to MCA.
Whats the easiest company to get approval with? new ISO shop?

Also, how do you guys do it? just add your own page to the contract you get from the lender? and send it over as PDF.
That should be legally compliant right?

bob@directloanleads.com

**FCF Fund** · 11-10-2015, 01:06 PM

I assume since you are asking this you are relatively new to the industry and/or forum. Let me start by saying welcome and many if not 90% of the lenders in this space frown upon these additional fees. It hurts the merchant not getting the money they need and can make you in breach of your ISO agreement.

Proceed with caution.

**AndyYSCISOdept** · 11-10-2015, 01:09 PM

FCF Fund - Thank you for saying that. I think the one piece of advice that goes missing a lot is what you just gave. And on top of the whole "Breach of Agreement" part is that you are opening yourself up for another Broker to have the opening they need to take your merchant away.

For example, if a merchant funds with you and another broker calls up and offers the same deal but says "No fees" how long do you think that merchants going to stick around!

Lets start the no fee revolution!

**BobSchmuck** · 11-10-2015, 02:09 PM

Good point!

I absolutely agree with you and I follow the same principle.
It's just that I submit a few deals to a lender with really really good rates and no fees.
However the commission is so low that sometimes it not worth my time.

**MCNetwork** · 11-10-2015, 02:19 PM

That's why you need to learn how to sell higher rates

**FUNd** · 11-10-2015, 02:22 PM

YSC starting the no fee revolution? LOL. Let's start with eliminating the 4 or 5 junk fees charged to every merchant by you guys on every deal!

**FCF Fund** · 11-10-2015, 02:25 PM

Originally Posted by FUNd

YSC starting the no fee revolution? LOL. Let's start with eliminating the 4 or 5 junk fees charged to every merchant by you guys on every deal!

Shots fired! To be quite fair YSC does take risks and funds the declines that no one else will! Their model is a little different from the Pearl or EBF of this industry so they can and do fund these deals that have no other option elsewhere.

**ridextreme** · 11-10-2015, 02:28 PM

Originally Posted by BobSchmuck

It's just that I submit a few deals to a lender with really really good rates and no fees.
However the commission is so low that sometimes it not worth my time.

don't let the merchants close you on a "good rate" you should be closing them on why they're getting a high rate. If they qualified for such a good rate why aren't they going to a bank?

To answer your question you can't just make up a fee sheet and add it to the contract. It needs to be specifically drawn up by a lawyer and processed through a reputable processing company.

**AndyYSCISOdept** · 11-10-2015, 02:28 PM

All revolutions have to start somewhere....Thanks FCF.

**AndyYSCISOdept** · 11-10-2015, 02:32 PM

Originally Posted by FUNd

YSC starting the no fee revolution? LOL. Let's start with eliminating the 4 or 5 junk fees charged to every merchant by you guys on every deal!

What was that old saying about...those in glass houses? I can say that I've never charged a closing cost, can you? And furthermore, anyone whose worked with me knows that I am the first one jumping all over my underwriters about fees and the need to keep them down. If the deal warrants no fees and/or minimal then that's something I can do.

**Mmarano** · 11-10-2015, 02:39 PM

PM, me. I'll help you. This is a world wind of opinions on the forum right now...

Originally Posted by BobSchmuck

Fellas,

As you may know, its so tough to get approval for ACH pulls with any company when they hear you are related to MCA.
Whats the easiest company to get approval with? new ISO shop?

Also, how do you guys do it? just add your own page to the contract you get from the lender? and send it over as PDF.
That should be legally compliant right?

bob@directloanleads.com

**FUNd** · 11-10-2015, 02:50 PM

Don't get defensive. Ive done plenty of defending of YSC on here, even as far as standing up for you Andy when you copied and pasted Zach's posts on your LinkedIn profile.

But now, you're saying I live in a glass house and throw stones while you guys charge $1000 in fees on 1.459s all day long...I'm a nice guy...but your pushing your luck bro.

**Michael I** · 11-10-2015, 03:08 PM

bob now i understand why you need lenders with no clawback . good luck on your burning bridges

**AndyYSCISOdept** · 11-10-2015, 03:09 PM

Not defensive, just asked a question. Didn't realize I needing standing up for when I shared what I thought to be sound advice on LinkedIn, especially after letting Zach know as much. But since we're Bro's now I'm glad I got you to stand up for me.

And I will give credit where Credit is due, you have said some nice things about YSC on here

**FUNd** · 11-10-2015, 03:10 PM

Originally Posted by AndyYSCISOdept

Not defensive, just asked a question. Didn't realize I needing standing up for when I shared what I thought to be sound advice on LinkedIn, especially after letting Zach know as much. But since we're Bro's now I'm glad I got you to stand up for me.

And I will give credit where Credit is due, you have said some nice things about YSC on here

Fair enough. Let's let it lie where it is.

**MCNetwork** · 11-10-2015, 03:11 PM

Originally Posted by AndyYSCISOdept

What was that old saying about...those in glass houses? I can say that I've never charged a closing cost, can you?

Oh really? How quickly we forget NLF. You were pretty liberal with the junk fees back then

**AndyYSCISOdept** · 11-10-2015, 03:15 PM

Not me bud, I worked under other people(you know who) and never charged a fee, couldn't sell em. But nice try.

**AndyYSCISOdept** · 11-10-2015, 03:16 PM

Originally Posted by FUNd

Fair enough. Let's let it lie where it is.

Agreed.

**Chambo** · 11-10-2015, 03:23 PM

Originally Posted by MCNetwork

Oh really? How quickly we forget NLF. You were pretty liberal with the junk fees back then

Not everybody was.....

**MCNetwork** · 11-10-2015, 03:34 PM

I have nothing against selling fees. If you have the ability to do it with the merchant's full consent and blessing, more power to you. Just make sure that the lenders you work with don't have a problem with it, otherwise you jeopardize losing the ISO relationship. Fees are pure profit to a broker/funder, and it would be silly to cut off this revenue stream entirely.

**AndyYSCISOdept** · 11-10-2015, 03:41 PM

Originally Posted by MCNetwork

I have nothing against selling fees. If you have the ability to do it with the merchant's full consent and blessing, more power to you. Just make sure that the lenders you work with don't have a problem with it, otherwise you jeopardize losing the ISO relationship. Fees are pure profit to a broker/funder, and it would be silly to cut off this revenue stream entirely.

And that's fair, but would you also agree that the fee's have gotten a little out of hand. I mean at thins point (at time of funding) the money is already expensive enough, why hurt the merchant even more and potentially set up a deal for default? I just don't see that as necessary, but again I can see how they can be very enticing.

**MCNetwork** · 11-10-2015, 03:43 PM

"Fair" is in the eye of the beholder. If YSC charges a six month 1.37 with no fees, is this more "fair" than another lender charging a six month 1.27 with a 5% origination cost? I only tack on fees if I fought to get the merchant a good deal. I definitely wouldn't charge fees on top of a 1.40 deal.

**AndyYSCISOdept** · 11-10-2015, 03:48 PM

I think my grammar and word choice may have let me down on my earlier post. I meant to say, "and that's a fair point". But what you're saying does sound reasonable.

**Zach** · 11-10-2015, 03:50 PM

I recommend to always quote all of your deals with a 10% origination fee and the maximum allotted commission, and subsequently negotiate from there.

**AndyYSCISOdept** · 11-10-2015, 03:54 PM

Originally Posted by Zach

I recommend to always quote all of your deals with a 10% origination fee and the maximum allotted commission, and subsequently negotiate from there.

You don't think that'd be risky and setting yourself up for rejection or the merchant to consider other options? That's an honest question because I am sure it can go both ways.

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