[jotucker1983]

A big problem I see with backdooring is largely due to the ISO's. Yesterday I emailed an ISO, told him what I can do to help him on a particular deal. Before we spoke on the phone, before he sent me a reply email, before he knew what my underwriting requirements are, he sent me the deal.

Is it possible that this guy had seen my company on statements before? Sure. Could he have called some friends, asked if I was legit? Absolutely. But to send in a deal before speaking, without knowing my minimum requirements, without even seeing my ISO agreement just seems to be VERY reckless.

Brokers also need to do their homework on funders before sending out deals, and make sure not to send out deals to too many people. Yesterday an ISO copied me on a submission, along with 6 other funders who compete in my general area. Any one of us could backdoor the file, and say it was one of the others. So before ISO's complain about backdooring, do your homework, make sure you work with trusted partners, and not too many either.

Right, but remember when I was promoting the concept of "ISO Underwriting" on both sides of the equation (to the funder/lender and to the merchant), you guys for the most part disagreed with me lol.

The situation you described doesn't occur with "ISO Underwriting" as ISOs/Brokers will do all research, due diligence, etc., on partners and prospective clients upfront.

- They will research who funders/lenders are such as if they are legit or actually brokers, how their underwriting criteria works, and what type of "paper grade" said platform usually boards.

- They will do upfront pre-qualification on prospective clients before they just shoot them off somewhere and before they "take an app", to know if the deal fits better for X platform or Y platform, or for X product or Y product.

- This makes for a much more efficient, structured, professional process all the way around.

But remember, you guys were against this lol. So unfortunately, this is the situation that you will continue to get. You get more and more ISOs not doing any research, just blasting off apps everywhere, running up unnecessary inquiries on credit reports of merchants, wasting resources of funders/lenders, getting back-doored, and a host of other issues because the process is not structured and unprofessional.