[Quickfunder]

We funded a $275K renewal with Kapitus that was supposed to pay 6 points. It was an extremely low-ball offer already, with Kapitus applying a buy-rate around 1.45 on this deal that kept changing. This was a deal we first funded in October for a 12 pt. upsell. But Kapitus claimed since merchant was renewing only 3 monthss in and consolidating a large balance, the risk was higher -- so we backed off on the high buyrate. After our points kept changing on the offers, we eventually sold it at 6 points.

Kapitus paid us out 2 points.

Now they are claiming they only pay on the net for renewals, so that it was 6 pts on what the merchant netted.

Everyone knows the industry standard is paying on gross and there is nothing in our contract that says we get paid on net. Curious if this is happening to any other ISO's out there and cautioning others to beware of working with Kapitus. The offer we chose in the portal was six points built into the offer -- nothing about 2 points on net. This is a bait & swtich scheme clear and simple.

I appreciate all the feedback and replies on this. We've had some discussions with Kapitus - from what we've learned, there was a lapse at the outset of Covid when a lot of parameters changed as with all funders. We've had a good experience working with them outside of this episode so will look to continue that. Not that we agree with the net/renewals policy, but misunderstandings are misunderstandings and thankfully we were able to see where the error came from.