The Payments Experts Podcast

The traditional payment processing landscape is undergoing seismic shifts, and this provocative discussion with David Leppek, CTO of SignaPay, examines what many in the industry have been whispering about: are Independent Sales Organizations (ISOs) facing extinction?

Major processors like First Data and Fiserv have been systematically pushing out their ISO channels, preferring direct relationships with software companies that now serve as the true acquiring partners. This consolidation creates a troubling gap in merchant services - who will advocate for higher-risk merchants when ISOs disappear? The legal experts at Global Legal Law Firm alongside Leppek explore how this shift might drive legitimate businesses underground or toward less regulated payment methods.

The conversation delves into card brand policies that increasingly favor issuers over acquirers, creating fundamental conflicts of interest in how payment disputes are handled. A fascinating case study emerges around Visa's acquisition of Verify, which transformed a free chargeback prevention tool into a $45 per inquiry service - effectively killing a product that helped merchants avoid costly disputes.

Cryptocurrency looms as a potential disruptor, though the panel debates whether its limited adoption after 15 years suggests inherent limitations or active suppression by incumbent payment networks. As one panelist memorably puts it: "My worst investment was getting into crypto. My second worst investment was selling it."

For payment professionals, merchants, and financial technology innovators alike, this discussion illuminates the power dynamics reshaping how money moves in our economy. The future of payments may depend less on technology than on who controls access to the networks where value is exchanged. Ready to navigate the changing payments landscape? Subscribe to the Payments Experts Podcast for more insights on how legal and technological shifts affect your business.

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**Matters discussed are all opinions and do not constitute legal advice. All events or likeness to real people and events is a coincidence.**
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Payment processing is undergoing a fundamental shift as major processors push out ISOs in favor of direct relationships with software companies, leaving high-risk merchants increasingly underserved and potentially driving transactions underground.

• Independent Sales Organizations (ISOs) face extinction as First Data, Fiserv and other processors cut ties with their sales channels
• Software companies have become the new acquiring partners, eliminating the need for traditional ISO sales forces
• Banks lack appetite for servicing high-risk merchants despite having the capability to do so
• ISOs traditionally serve as merchant advocates, helping businesses navigate complex compliance requirements
• Card brands' tightening fraud policies across multiple BINs make it harder to serve merchants with higher chargeback ratios
• Visa destroyed their Rapid Dispute Resolution system by acquiring Verify and turning a free service into a $45 per inquiry fee
• Chargeback systems show clear bias toward issuers over acquirers, creating conflict of interest in dispute resolution
• Cryptocurrency adoption remains limited despite being around as long as Uber
• Card brands likely want to position themselves within crypto ecosystem rather than be displaced by it
• Innovation in payment processing often gets shut down when it threatens established revenue streams

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A payments podcast of Global Legal Law Firm