|
Letters to the Editor
|
|
Hi
Paul: Great
GSQ quarterly as usual. You said FDMS is expected to go over 50,000
Internet merchants in 1999. Well, this has already happened. Authorize.net
with FDMS as the primary processor is already at 52,000+ merchants online. Thought
you would like to know. Todd
Sumrall To
The Green Sheet: The
“Erroneous Billing Troubles ISOs” article is amusing. Why? The Golden
Rule stated another way is, “What goes around, comes around.” One
company’s view of doing business is another’s scam, with the
perspective dependent on who’s on the receiving end of the money. The
free enterprise system is wonderful when you’re winning, but a scam when
you’re loosing. Quit whining! Welcome to the real world. Irrespective,
the erroneous billing, equipment, and reprogramming, as well as bankcard
supply scams, make it difficult for legitimate companies (subjective
term), even banks and processors, to service and support their clients. So,
who does a bankcard merchant trust and believe and to whom can they turn
in confidence when they need help? NO ONE! No
use belaboring the point since most think this doesn’t apply to them. Biff Biff: Thanks
for the comments. Based on your statements, I know you loved my rant in
the last issue of the year. Paul
H. Green Dear
Green Sheet: Can
you please tell me how to get hold of your research titled: “The Paper
Check’s Surprising Survival and Continuing Growth on the Eve of the 21st
Century?” Thanks!
Jo Jo: Please
give me your mailing address, and we will send it to you. Paul
H. Green Dear
Green Sheet: We
receive your Green Sheet and it
is great reading. Thank
you. Margo,
Chittenden Bank Paul: I
am in need of some general guidance with respect to understanding how the
asset structure of an ISO is maintained. General
Credit Forms has many ISO customers that purchase terminals, supplies, and
other services related to the merchant acquiring business. We have been
very fortunate in the past in not experiencing open trade credit risks.
But, as with all good trends, it appears that our luck has run out! We
have an unnamed ISO that has defaulted on a rather sizable trade debt and
I am in the process of legal action to obtain a judgment. My anticipation
is that there is no cash in the ISO or they would be paying their bills.
But, there has to be some value in the merchant accounts that they have
sold and not passed on to a secondary buyer. My
question is: If
we obtain a judgment against the ISO and execute that judgment and seize
the ownership of the merchant base they own, can we readily find some
other ISO/processor to immediately step in and purchase our interest in
these accounts? Do you know of any players that would be interested in
creating a “standby agreement” to perform this action if we need them? Paul,
I know that this information is sketchy and leaves a lot of unanswered
questions, but any help you can provide will be appreciated. Glen
Taylor, General Credit Forms, Inc. Glen: With
the information you provided I do not know the size of the ISO
organization that you are asking about, but in general I would think that
it would be hard for General Credit Forms to acquire the rights to a
residual base (assuming the ISO has any rights) and then, in turn, assign
or sell them to another ISO or Acquirer. Many
ISOs have conditional rights to ongoing residuals based on, among other
things, fraud reserves and experience, ongoing equipment or field
customers service obligations, and perhaps most important, remaining
financially viable as a company. Hope
this is of some help. Good
Selling Paul H. Green To
The Green Sheet: I
am an independent sales organization in New Jersey and I would like some
information on your Green Sheet subscription.
Thank you. Arnie Arnie: Subscription
costs are on the Web page. Please send me your address, and I will send
along a complementary Green
Sheet
and our magazine,
GSQ,
so you can see if you are interested. Good
Selling! Paul H. Green Paul:
In
reading this week’s issue of The Green Sheet and the comments from your book on Checks
at the End of the 20th Century, could you please give me a thumbnail
overview to support your statement about checks costing less than half the
expense of processing electronically? I
would appreciate the ammunition. Regards,
Jeff Edwards Jeff: Please
go to the Green Sheet site (http://the.greensheet.com) and click on the
banner for “The Indelible Check” from the CPSA. You can buy this
report online ($10). It has the data you are looking for. Good
Selling! Paul Green
© Copyright
1995-2000 |
