[Winning]

how can iso rep be clawed back?
they dont uw the deal - why should they be affected by the uw performance

Does the answer below check out?

Clawbacks for ISO representatives typically occur if there are chargebacks or other violations of their agreement with the acquiring bank. The acquiring bank may require the ISO to refund some or all of the compensation they received for a specific transaction if the transaction is later found to be fraudulent or violates the terms of the agreement.

The reasoning behind clawbacks for ISO representatives is that the acquiring bank may bear financial liability for chargebacks or other violations, and the ISO is seen as being responsible for ensuring the transactions they facilitate are in compliance with the agreement. The clawback serves as a way for the acquiring bank to recover some of its costs in such cases.

It is important for ISO representatives to be aware of and understand the terms of their agreement with the acquiring bank, including any provisions for clawbacks, in order to minimize their exposure to financial risk.