Residual disputes are incredibly complex and contentious issues in the electronic payments industry. This is because they often arise between Independent Sales Organizations (ISOs) and sales agents when the accuracy, completeness, and fairness of residual payments are called into question.
If you are a merchant dealing with residual payment disputes, it is important that you reach out to a skilled merchant processing litigator immediately. Contact Sigal Law Group today for a free consultation. Our attorneys have years of experience helping merchants in similar situations.
What is a Residual Dispute?
Residuals are payments made to sales agents or ISOs to connect a merchant with a payment processor. They come from a portion of the fees charged to merchants for processing credit card transactions. If a sales agent believes the charge reports are inaccurate, incomplete, or false in some way, they may accuse the ISO of underreporting transactions or manipulating fee structures.
The common issue, however, is that ISOs have a right to offset their losses from the merchant portfolio against the sales agent's residuals. Other issues might include residual clawbacks due to billing errors or calculation mistakes, and disputes over the termination of residual income because of alleged breaches or post-termination actions by sales agents.
To ensure you are not being subjected to the negative consequences a residual dispute might cause, you must work with an experienced attorney.
Merchant Processing Litigator
Resolving residual disputes requires a deep understanding of the complex relationships between merchants, sales agents, ISOs, and acquiring banks. The best way to mitigate the risk of residual disputes is to ensure you have a competent attorney review your contract prior to signing. However, if you have already signed an agreement and are trying to navigate a residual dispute, our merchant litigators can help.
The attorneys at Sigal Law Group will review your contract to determine an appropriate defense that guarantees the best possible outcome for your case. Contact Sigal Law Group today for a free consultation. We're here to help.
