Library · MIDs · How to run this
Ask a high-risk processor in writing
High-risk processors sell speed. The burn is in the clauses you did not get in writing. Ask before you board. Then read the merchant processing agreement against those answers.
Pair: Questions before you sign on MIDs. The code on the application is a different job: MCC on the MID. Fee lines after you have a schedule: what each fee is.
The seven questions
Who is the acquiring bank? Legal name. An ISO is a seller. A PayFac is a platform. If they hide the bank, you cannot take processing history later and you cannot ask who added you to MATCH.
What is the reserve? Percent, rolling or cash, hold days, release clock. “We’ll see” is not an answer. Reserve is a hold. It is not a processing rate.
What do they do when you trip a network program? Name the program they actually watch (Visa VAMP, Mastercard ECM, or the line in this agreement). Who pays fines. Extra reserve. Dump. Do not paste a percent people quote. Ask what happens at their line.
What prevention is required to board? RDR, alerts, 3DS. Who pays. Whether a worked alert sits in primary. Required prevention is a boarding condition, not a gift.
What is the term, and what is the exit charge? Months, auto-renew, early termination dollars. If leaving costs more than a dying MID, you are stuck.
What are the caps on day one? Daily and monthly. What happens if you blow them. A “we’ll raise it” promise is not a cap.
Which processing history will they take? Last 3/6/12 months of statements, or none. If they take none, this account ages from zero for programs and MATCH.
How to use the list
Send the seven questions by email. Tick a row when the answer is written. Read the merchant processing agreement and the fee exhibit against the ticks. Do not board with holes.
Do not ask them to swap the MCC to look safer. That is how you get a MATCH add. Look up the code that matches the offer on this page.
A MATCH letter is a different job: Ask the acquirer about MATCH in writing. Leaving a PayFac is a different job: When to leave a PayFac.
Related: Payments (the agreement you will sign), Chargebacks (the program line on the live account).
Procedure
- Email the seven questions. A call is not a record.
- Tick a row when the answer is in writing.
- Read the merchant processing agreement against those answers.
- Do not board with holes.
- The MCC on the application still has to match the offer.
Failure modes
- Signing off a deck that names an ISO, not the bank.
- Treating “we’ll see on reserve” as an answer.
- Assuming they use the percent people quote for VAMP.
- Buying prevention they require without asking if it sits in primary.
- Skipping the exit clause because you plan to stay.
Worked example
None on this page yet. When one lands it will be a real case: what broke, the number, and what changed. Not a composite.
Glossary
- Acquiring bank
- The bank that holds the card-network license. An ISO is a seller. A PayFac is a platform. Ask for the bank’s legal name.
- Rolling reserve
- A percent of settlement held against later losses, then released on a clock. A hold, not a processing rate. Get hold days and release in writing.
- Early termination
- Dollars due if you leave before the term. Read months, auto-renew, and the exit charge before you board.
Work with us — We run this job on your accounts. Services
FAQ
- Can I take the ISO’s word on a sales call?
- No. Email the questions. File the reply next to the merchant processing agreement. A call is not a record.
- What if they will not name the acquiring bank?
- You are boarding onto someone else’s license. Walk. You cannot take history or fight a MATCH add without knowing who holds the bank.
- Do I type a typical reserve percent?
- No. Their number, their hold days, their release. Blank on the agreement is still a hole until they write it.