[AndyYSCISOdept]

The only issue I take with Fees that ISOs charge is when they call and ask the Origination/ACH Prog. fee to be waived completely (and it's always because the merchant is "upset" about the fees) but still charge their closing cost. Tell me how the funder should feel about that?

Oh, and the second part about 5-20 dollar ach's sounds like out and out trickery on the Brokers part. Never heard or seen that before but still it doesn't surprise me.

[Fundyman]

The only issue I take with Fees that ISOs charge is when they call and ask the Origination/ACH Prog. fee to be waived completely (and it's always because the merchant is "upset" about the fees) but still charge their closing cost. Tell me how the funder should feel about that?

Oh, and the second part about 5-20 dollar ach's sounds like out and out trickery on the Brokers part. Never heard or seen that before but still it doesn't surprise me.

I think what happens here is that the broker, after being told he is going to get only 5-6 points on a $25K advance start thinking about how that's going pay the bills (even if he were to close 4-6 more of those for that month!), then, starts thinking of creative ways to make an additional 2 pts on the deal.

The problem is also the lack of education on the broker's part, and the lack of transparency from the funder's end when it comes to how much money really gets made in a deal. For example, if a broker doesn't understand that the 1.44 that a funder charges isn't going straight into the funder's pockets, but that there are investors/crowdfunders/backup banks who have to be paid out of a platform, that broker is thinking the funder is just pocketing 44% of that funded amount within a short 2.5-4 month period, while he gets a measly 5-6 points, whereas other funding companies have already put the up-to-17-points bug in his ear sometime in the past, making him feel some type of way when the deal gets turned down over there, approved over here, but only where this company pays 5-6 points...

They look at the D-paper funder as the guy who simply makes all this interest on the deal, while charging higher factor rates than the guy who would pay 12 pts+ but won't approve the deal. It just creates this great deal of confusion in his mind. And then he start to think: "How can I make an extra 2-3 pts here, and live w/ the feeling of NOT just making 6 pts on this deal?"

I've been there myself; not w/ the origination fee schemes or additional daily ACH debiting, but on feeling as though I should be able to get more than 7 points for selling a 1.60! Not understanding how the platform concept works, or syndication, or any of it really, and just thinking all those 60% of interest went straight to the funder. I have spoken to quite a few colleagues who feel the same way. And, we all read the blogs about the so-called "Day of the Broker" coming to an end. Many brokers actually believe this, and start feeling as though the industry is truly not in their favor, when all those UCCs have been used & abused, and it's hard to even get one deal or two in a month, unless you have a powerhouse of telemarketers on the phone.

So, they get desperate...

Or maybe, I'm just bugging out.