[J.Celifarco]

Just trying to think about it from their viewpoint... if they had gone to run credit and had seen that other funding companies had also run credit they could have assumed there may be competition. In their shoes I might do the same to ensure that the deal gets done rather than risk it being pitched too high and not sold because of a better offer. In a situation like this I would hope they would at least tell you this was the case though, but this is one scenario where that max upsell might be plausible.

Its not the banks place to make that assumption. As the ISO or the closer on the deal it is up to them to decide what they want to sell. The bank should not be getting involved with that. If the bank wants to inform the ISO that there has been credit pulls recently and that there may be competition on the deal fine, but they shouldn't take it upon themselves to cap the commission.

[Chambo]

Its not the banks place to make that assumption. As the ISO or the closer on the deal it is up to them to decide what they want to sell. The bank should not be getting involved with that. If the bank wants to inform the ISO that there has been credit pulls recently and that there may be competition on the deal fine, but they shouldn't take it upon themselves to cap the commission.

if the ISO demanded a certain buy rate to make the deal competitive...and if this rate is out of the box, then by all means they can

[JSL23]

I would think they had some reason to cap the buy-rate, but they should let him know why so everyone is on the same page. Still, a Lender should not play God with someone's livelihood. It is the ISO's client. He brought the Merchant to the table and did all the work. Who knows how much he spent in marketing to acquire this Merchant. Maybe it was through a referral partner. If they want to cap it then they should have just given him __ points on the ISO Agreement in the first place.

If there is another Lender that could potentially give similar terms, I would take it to them. If the daily pull exceeds the percentage they can take, they should lower the buy rate a few points. If I was the ISO in this case, sure, I might want to "see it from the Lender's point of view" just so I can understand and possibly avoid it in the future, but I'd be very unhappy if they arbitrarily capped it at 5 or 6 points. By doing so, they are not honoring their end of the agreement.

Situations like this are what cause a rift between ISOs and Lenders. They don't want us to stack or bring him to someone else, but they only pay 50% of the original commission on a renewal for the NET amount. They renig last second for BS reasons and make you look like a schmuck, etc, etc. Buy Rates are created by Lenders. We are trying to make a living on a system created by them.

In all fairness, we don't know the full story, but some middle ground should be found here....maybe add a 2-3 point bonus

[J.Celifarco]

if the ISO demanded a certain buy rate to make the deal competitive...and if this rate is out of the box, then by all means they can

If thats the case then absolutely they can, but from how this was explained that did not seem like the case