Merchant Service Providers May Get Shafted

January 23rd, 2008 • Related • Filed Under

Merchant Service Providers May Get ShaftedRumor has it that those who depend heavily on residual income, aka Merchant Service Providers, may get shafted in 2008. Seems like many banks are starting to feel the pinch and sources say that some banks including Wells Fargo (NYSE WFC) and Bank of America (NYSE BAC) are considering reducing or even eliminating some high cost ISO’s from their portfolio.

The process is pretty straightforward; sell off the merchant account portfolio to a less than friendly merchant bank and in the shuffle, the merchant account provider may just end up getting the boot. Can it happen? Some say, in fact, yes.

The question of course then becomes, what does the end merchant do when the merchant service provider they depend on for their merchant account needs can no longer spend the time and efforts on their account to get the support they need? Only time will tell how this plays itself out but I do feel sorry for the many legitimate merchant service providers in the industry who frankly deserve better treatment. While there are more than a few nameless providers who deserve the boot, the good ones out there deserve a bit more respect than, “Here is your hat, don’t let the door hit you on the way out.”

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There Are 3 Responses So Far. »

  1. Comment by AnthonyT on 24 January 2008:

    SUCKS for the people but people survive.

  2. Comment by Jeffrey1959 on 24 January 2008:

    Oh no, i hope this doesn’t lead to a decline in quality of transaction processing solutions as we know them

  3. Comment by carmela on 2 February 2008:

    For merchant account holders they have to review their terms of service with the service provider to ensure that they will not be in the losing end.

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