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Table of Contents

Lead Story

AdvanceMe patent ruling opens merchant funding floodgates


Industry Update

Discover dumps RAP, easi for new program

Nothing beats the feet-on-the-street life

Smart Card Alliance conference: What's in store?

NAOPP teleforum packs potent educational punch

GS Travel Advice: A great place to visit


Heather Marsh

Check 21 to fuel ATM replacements

Tracy Kitten


Processor certification 101

Scott Henry


Street SmartsSM:
Pay, don't touch: Will contactless fly?

Dee Karawadra
Impact PaySystem

Don't snooze and lose the cash advance chance

Mike Evans
2nd Source Funding

Tableside payment solutions: A compelling case

Grant Drummond

Outsource the chores, increase the sales

Ken Musante
Humboldt Merchant Services

Power up your password protection

Joel and Rachael Rydbeck
Nubrek Inc.

Company Profile

Assurz Inc.

Nxgen Payment Services

New Products

Secure, spot-on printing

TROY MICR 2015 Printer
TROY Group Inc.

All-in-one online gift card management

Customer WebSuite
Givex Corp.


Take the easy way



Resource Guide


A Bigger Thing

The Green Sheet Online Edition

September 10, 2007  •  Issue 07:09:01

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A call to AgenTalk action

I got the Aug. 13 copy of The Green Sheet ... and saw my name on the cover ["AgenTalkSM: David E. Hanlin Jr.: A colorful life, a day at a time," issue 07:08:01].

Thank you, Green Sheet, for the privilege of sharing. I'd like to see the rest of my MLS Forum buddies respond to the e-mail address at the end of each AgenTalk article [] so that we can hear your little pearls of wisdom and insights.

David E. Hanlin Jr.
MLS Forum member Slick Streetman

EPI explains loss vs. risk

In the Street Smarts(tm) column ["Buyer beware: That means you, dear MLSs," by Dee Karawadra, The Green Sheet, Aug. 27, 2007, issue 07:08:02], the writer is confusing two terms, "losses" and "risk."

Albeit very similar, they are ... very different terms with entirely different results for the MLS and ISO.

As noted in the article, under our normal ISO program incorporating a $5 statement fee, EPI will incur an expense of $2.50, with the ISO also incurring a mutual expense of $2.50 where an account has generated zero revenue to cover the expense we share.

Both EPI and the ISO incur a shared loss, but while EPI has several programs that incorporate a full-liability relationship, registration and BIN sponsorship, our typical ISO/MLS program does not involve any risk for the ISO/MLS. It is a zero liability program.

The example referenced [in the article] as written on GS Online's MLS Forum deals specifically with MLSs and their revenue splits, while the author's commentary indicates that EPI forces its ISO and MLS partners to share in liability on merchant risk losses. That is emphatically not the case.

Our MLS partners do not share in liability or losses caused by ACH [automated clearing house] rejects or other merchant losses.

The above example I wrote shows that if they [the ISO/MLS] price a merchant to not incur any fees (and thus generate zero revenue), then we both share a mutual expense of a $5 statement fee in keeping that account on file -- far less than the expense thousands of dollars in ACH rejects and uncollected chargebacks would be if our MLS partners bore that burden too.

Michael Nardy
Electronic Payments Inc. (EPI)

In issue 07:08:02, I had stated that "Having a true partner that will share in your losses and your gains is key in building your portfolio. The only negative to this is that you would also share risk."

I want to clarify that in no way was I insinuating that Michael Nardy, or EPI, passed chargeback and ACH reject losses on to the MLS. I was speaking in general terms. My sincere apology to Michael Nardy.

Dee Karawadra
Impact PaySystem


In "A pandemic is sweeping POS terminals: Are you ready?" [By Biff Matthews, The Green Sheet, July 23, 2007, issue 07:07:02], Matthews incorrectly stated that VeriFone and Microsoft have "teamed to provide a fully integrated, end-to-end solution that incorporates credit card processing, accounting and ordering." The deal is between Microsoft and First Data Corp.

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

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