[WhoisKingsley]

ISOs, how many of you are charging your own fees?

I have no problem with this. We all need to make the most amount of money while retaining our merchants as clients.
We've recently just dropped our default PSFs/origination fees to 0% (the ISO still has the option of raising the fee if they so wish)

But I get the feeling that one of the reasons that there was push back on the fee was because of ISOs who charge their own fees on apps or on Funding.
Is this feeling wrong?

Also I've been seeing the name of one of my (former) ISOs on bank statements taking $5-$20 daily ACH pulls on certain merchants. He claims that this is because he syndicates; but why would he be doing his own seperate ACH transfers and not merely getting paid by the funder? Has anybody seen this before?
The guys I've been talking to think this is a fee he's been charging from the Merchant.

Does this make sense?

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Ben Faulding
ISO Relations
FOX Business Funding
347-632-3329

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.