[Finance1]

I will tell you another area that is going to get interesting- RENEWALS. As funders have more and more competition driving price down, to retain their portfolio from leaving, rates on renewals are coming further and further down. This reduces revenue to both funder and ISO. The ISO is especially hit hard on this trend because if the schedule A is no longer being followed on renewals and its fight to survive mode for funders on renewals, projections of recurring revenue are out the window. I have seen rates go from 1.35's/6 to 50% of that on renewal. Even though ISO has a schedule A with a "x" payout, to just keep the deal, ISO had to eat a lot of commission. Rates are coming down down down....good for merchants, bad for resellers...

Easy way to protect your book is just not double factor renewals. Any company paying you off is hitting the balance with the rate. If you just fund add-ons then merchants never leave you. Plus you can still charge full rate on the new funds. It's a better deal for the merchant.

Whenever we get a payoff request for a merchant that has a good history we just call them up and show them the math. If they are a problem account we don't say a word. LOL