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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. 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.



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


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


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.


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.



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


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


Please go to the Green Sheet site ( 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


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