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01-04-2016, 12:10 PM #10
- Join Date
- Jul 2014
- Location
- Online
- Posts
- 965
Hi Fox! I think the ways that you are attempting to do business with your ISOs is very reputable. You are seeing the issues and trying to make it work better for both sides of the fence. Unfortunately, lowering your own origination fees to 0% to accommodate Brokers is not your answer. Your origination fees cover your UW and legal? Correct? Giving this free space to add more $$ in for the broker will just lead you to getting in trouble. By trouble- I mean issues with ISOs and non-payments from your funded merchants who are mislead in the (broker induced rushed) closing process.
Is your feeling wrong? No. It's frustrating as hell. It leads you to do more work and having to explain and rework the way you do business. I am pretty sure your not an A-B Funder and your rates are not very low. Adding a fee on top of your rates even if there is no origination is ridiculous and greedy and shouldn't be allowed in this industry. Period. All it does is lead to the Merchant wondering why he paid a $4k fee on top of a $20k advance that he is now paying over 50% on... what's the point?
As for you bank statements of daily ACH pulls... unless this is being done manually EVERYDAY and in the Business Name? of the ISO- this is rediculous and syndication should be handled by the Funding Company that is in the lead, receives payment, and disperses payment to the syndicates... correct me if I am wrong DF, but that's how I learned how "legal" syndication is done.
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