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Table of Contents

Lead Story

Advice for prepaid pros


Industry Update

Summary judgments sought in 'Wal-Mart case' sequel

Global mobile payments to reach $945 billion by 2015

Earnings indicate strong payments industry


Going global: Tips for merchants on expanding to international markets

Shane Fitzpatrick
Chase Paymentech Solutions LLC

Mobile payments head to the cloud

Doug Dwyre

Selling Prepaid

Prepaid in brief

Openbucks provides uplift for prepaid

Prepaid's role in defining financial services


U.S. transit agencies buy contactless systems

Michael Simon
Smart Systems Innovations LLC

2012: The year mobile payments go mainstream?

Patti Murphy
ProScribes Inc.


Street SmartsSM:
Integrity and ethics from day one

Bill Pirtle
C3ET Credit Card Consortia for Education & Training Inc.

Section 6050W relief doesn't mean compliance is voluntary

Troy Thibodeau
Convey Compliance Systems Inc.

Innovate or perish

Dale S. Laszig
Castles Technology Co. Ltd.

Good talent is hard to find

Jeff Brodsly
Chosen Payments

The cost of cyber attacks

Nicholas Cucci
Network Merchants Inc.

PCI: Target or shield

Steve Robb
ControlScan Inc.

Company Profile

Street Savings

New Products

A new layer in cloud payments

Transmodus Corp.


What defines success?


2011/2012 Calendar of events



Resource Guide


A Bigger Thing

The Green Sheet Online Edition

November 28, 2011  •  Issue 11:11:02

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Chargeback insurance?

Is there such a product as chargeback insurance? If so, how does it work and who provides it? Also, do ISOs procure the insurance for themselves or do merchants get it for their businesses?

Steven Kahn
Kahn Payments Ltd.


It is The Green Sheet's understanding that chargeback insurance can protect risk-holding acquiring banks, processors and ISOs from losses when merchants are unable to cover their chargebacks. Most ISOs hold a certain amount of each merchant's funds in reserve to cover chargebacks.

Chargeback insurance products are designed to provide relief in the event a merchant's reserves become depleted and the ISO has to recover funds from the merchant (which may or may not be possible, depending on the state of the merchant's business and the amount of the chargebacks).

We have also heard of ISOs offering chargeback insurance to merchants. However, it is not our practice to recommend individual companies to our readers.

And we cannot point you to our Resource Guide listings to research insurance providers because no companies providing chargeback insurance are currently listed in the guide.

We suggest you check with your ISO to see if the company has such a product or knows of a business that does.

We also suggest you post any questions you have about chargeback insurance on GS Online's MLS Forum accessed via the Forums link on our home page,


Working with multiple ISOs

I'm new to merchant services (eight months) and I've been sending all of my business to one ISO, but lately I've heard it's a good idea to work with more than one ISO, because it gives you flexibility to choose the best processor for the type of business you're boarding. Are there any rules against working with more than one ISO?

Deena Holtzburg
Merchant Level Salesperson


There is no overriding rule or card brand requirement stating that merchant level salespeople (MLSs) must work solely with one ISO. However, some companies may stipulate in their contracts that agents work only with them. This is the type of question every MLS should ask before establishing a working relationship with an ISO.

We highly recommend you consult an attorney with payments industry experience before signing a contract so you know exactly what your rights are under the agreement.

Also, when soliciting a merchant, you must be scrupulous about using the ISO business name registered with the card brands through the member bank that will be accepting card transactions from said merchant upon boarding.

For more information about this, see "ISO legal setup steps," by Adam Atlas, The Green Sheet, Jan. 24, 2011, issue 11:01:02.


Call us, write us

Would you like us to cover a particular topic? Is there someone you consider an industry leader? Did you like or dislike a recent article in The Green Sheet? What do you think of our latest GSQ? Email your comments and feedback to or call us at 800-757-4441.

Notice to readers: These are archived articles. Contact names or information may be out of date. We regret any inconvenience.

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