Case against Ore. ISO may not be last

Case against Ore. ISO may not be last
Tags: Bank / Credit Union, Distributors / ISO / IAD, North America, Other, Regulatory Issues, Transaction Processing
June 4, 2007

Digital Transactions: A case filed by the Federal Trade Commission against an independent sales organization in Beaverton, Ore., may not be the last action the federal regulator will bring. In April, the agency sued Merchant Processing Inc. in federal court, alleging the ISO duped merchants by promising to buy out existing terminal contracts and handle transactions at lower rates. In actuality, FTC says, the company did not buy out the old leases and charged higher rates. Though the agency won't comment in detail, it apparently has under investigation other ISOs on suspicion of similar allegations.