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Insights and Expertise

Third-party oversight includes managing channel conflict.

This is not a data issue. It is The solution is clarity and consistency, including:
a governance failure. • Clear policies;
• Normalized and linked data;
• Coordinated action.
will nearly always be excluded from moving their existing
merchants to other providers. Some will also attempt In an environment where regulators increasingly expect
to limit their sales entities from soliciting any merchant banks and acquirers to demonstrate control over their
within their portfolio. Sales entities should consult an third parties, channel conflict is no longer a commercial
industry attorney to ensure they are not inappropriately nuisance. It is a risk management obligation.
limiting their addressable market.
As founder of Humboldt Merchant Services, co-founder of Eureka
Channel conflict is unavoidable, but the downside should Payments, and a former executive for such payments innovators as
be managed. To mitigate channel conflict, processors WePay, a division of JPMorgan Chase, Ken Musante has experience in
and acquirers should anticipate it. They need simple but all aspects of successful ISO building. He currently provides consulting
consistent policies that reflect how such instances will be services and expert witness testimony as founder of Napa Payments
addressed. They will also need systems that identify and and Consulting, www.napapaymentsandconsulting.com. Contact him
link multiple MIDs from the same merchant, as well as at kenm@napapaymentsandconsulting.com, 707-601-7656 or www.
ensure adverse action is consistently applied. linkedin.com/in/ken-musante-us.