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For ISOs that haven't focused on a leasing model, the With pressure coming from all angles, a solid leasing
thought of giving away pricing likely keeps them up at model requires the strong mortar of a comprehensive
night. But ISOs that are deep in the leasing model prosper compliance program.
on the upfront financing from the leasing companies.
This lump sum, upfront payment, as opposed to small Leasing is lucrative
payments over time, allows ISOs to pay larger bonuses Despite the fact that the leasing model receives heavy
to their MLSs. And that cash-in-hand model attracts scrutiny, that sales agents require another level of
aggressive sales staff who often burn out fast, which can management, and the potential for higher merchant
lead to high agent turnover. complaints, the leasing model is a way for ISOs to bring
instant capital into their pipelines.
In contrast, the residual paycheck attracts agents who are
in it for the long haul, in part because their paychecks may The leasing program must be well-vetted and have
be tied up in their continued referrals. ongoing management to ensure it doesn't trigger a fine or
investigation that will ultimately cost the ISO more than it
Thus, ISOs looking to capitalize on leasing need to know makes from the program. Building a compliance program
the type of MLSs this will attract. Unfortunately, it draws and sales strategy to successfully push a leasing program
agents looking for the fast reward, ones that may make is easier than one might think, and all sales models
false statements, with or without knowledge, to ensure a could benefit from diversifying and expanding into an
quick payment. Further, because they are paid upfront, aggressive leasing sales pipeline.
such leasing sales agents have no stake in the merchants'
continued business.
James Huber is a Partner at Global Legal Resources LLP. Global Legal
These internal problems can lead to external pressure from has advised electronic payment companies and their affiliates on
processors, banks, investigative agencies and litigious every aspect of their business. Global Legal are payments litigators
merchants. Regulatory compliance and Operation Choke that defend regulatory investigations, civil enforcement actions, and
Point aren't just buzzwords, task forces are looking class-actions. The attorneys there are experts at instituting regulatory
heavily at the electronic payments industry, and merchant compliance procedures to avoid liability, as well as negotiating pay-
complaints about aggressive MLSs are a springboard to ments agreements, mergers, and acquisitions. James can be reached at
trigger these investigations. jhuber@glrlegal.com.
For ISOs that haven't focused on a leasing model, the With pressure coming from all angles, a solid leasing
thought of giving away pricing likely keeps them up at model requires the strong mortar of a comprehensive
night. But ISOs that are deep in the leasing model prosper compliance program.
on the upfront financing from the leasing companies.
This lump sum, upfront payment, as opposed to small Leasing is lucrative
payments over time, allows ISOs to pay larger bonuses Despite the fact that the leasing model receives heavy
to their MLSs. And that cash-in-hand model attracts scrutiny, that sales agents require another level of
aggressive sales staff who often burn out fast, which can management, and the potential for higher merchant
lead to high agent turnover. complaints, the leasing model is a way for ISOs to bring
instant capital into their pipelines.
In contrast, the residual paycheck attracts agents who are
in it for the long haul, in part because their paychecks may The leasing program must be well-vetted and have
be tied up in their continued referrals. ongoing management to ensure it doesn't trigger a fine or
investigation that will ultimately cost the ISO more than it
Thus, ISOs looking to capitalize on leasing need to know makes from the program. Building a compliance program
the type of MLSs this will attract. Unfortunately, it draws and sales strategy to successfully push a leasing program
agents looking for the fast reward, ones that may make is easier than one might think, and all sales models
false statements, with or without knowledge, to ensure a could benefit from diversifying and expanding into an
quick payment. Further, because they are paid upfront, aggressive leasing sales pipeline.
such leasing sales agents have no stake in the merchants'
continued business.
James Huber is a Partner at Global Legal Resources LLP. Global Legal
These internal problems can lead to external pressure from has advised electronic payment companies and their affiliates on
processors, banks, investigative agencies and litigious every aspect of their business. Global Legal are payments litigators
merchants. Regulatory compliance and Operation Choke that defend regulatory investigations, civil enforcement actions, and
Point aren't just buzzwords, task forces are looking class-actions. The attorneys there are experts at instituting regulatory
heavily at the electronic payments industry, and merchant compliance procedures to avoid liability, as well as negotiating pay-
complaints about aggressive MLSs are a springboard to ments agreements, mergers, and acquisitions. James can be reached at
trigger these investigations. jhuber@glrlegal.com.
