[Fundyman]

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?

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

Ben, the only thing I can think of with the additional $5-20/day you saw there is that the broker sent out his own mini-agreement to the merchant for an additional $5K, saying something like: "The max they approved you for is $25K, but I'll give you another $5K separately if you sign an agreement with me at (say $20/day)."

Either that, or the broker sets their own fee of $5K for a $70K deal, and agrees to be repaid that fee in daily increments instead of a lump sum, so as to alleviate the feeling of $5K just coming out of the account right after the merchant got funded, when they needed every penny of that money.

Who knows what's going on in the industry these days???

[FoxIso]

Ben, the only thing I can think of with the additional $5-20/day you saw there is that the broker sent out his own mini-agreement to the merchant for an additional $5K, saying something like: "The max they approved you for is $25K, but I'll give you another $5K separately if you sign an agreement with me at (say $20/day)."

Either that, or the broker sets their own fee of $5K for a $70K deal, and agrees to be repaid that fee in daily increments instead of a lump sum, so as to alleviate the feeling of $5K just coming out of the account right after the merchant got funded, when they needed every penny of that money.

Who knows what's going on in the industry these days???

This is the thing that makes the most sense. The problem being is that when I asked him about it he told me it was syndication. I would almost rather he had been lying about it then have him be pulling some crazy nonsense with syndication.

[Fundyman]

This is the thing that makes the most sense. The problem being is that when I asked him about it he told me it was syndication. I would almost rather he had been lying about it then have him be pulling some crazy nonsense with syndication.

Well, what happens is on your contract with that ISO, I assume it should be clear there will be no non-compete, no stacking, or whatever solicitation on the broker's part. Hence, you can technically check him for having "stacked" another advance through that syndication, because from that answer he gave you, that's what it sounds like it is that really happened..