At Global Legal Law Firm, we assist companies in our local San Diego, California area and across the United States with our complex business litigation services. Our attorneys have extensive experience with all business litigation needs, and we’ve had a specialty in electronic payments since 2008. We provide consulting services to businesses in any state, and we provide class action lawsuit defense when it comes to it. We can also help businesses hold their trade secrets, provide defense for employment claims, and pursue ownership disputes. One of the most important services that we can offer any business, even if they don’t need traditional litigation, is contract review.
Particularly if you’re looking to work with an independent sales organization (ISO) to handle your merchant account for credit card and electronic payments, you’ll want a payments attorney with years of experience in this specialized space to help. It’s preferable for any business contract to be drawn up by an attorney, but failing that, it’s in your best interest to at least get legal advisement during the contracting period, through contract negotiations, and for any needed revisions to existing agreements. Naturally, having an attorney review before signing an ISO contract can also help you with negotiations. Here are some of the main things to look out for and how we can help.
These are among the most contested contract terms in ISO agreements, and you’ll want a contract manager to make sure your terms are fair. Sales agents will typically collect residual payments from ISOs, whether it’s from equipment fees, typical business transactions, or other sources. A termination provision in an employment contract typically states how long these residual payments will go on for and whether renewal is possible.
It will also typically have a clause that lists how and why these residuals can be terminated. If this occurs early, there may be extra fees involved. Most contracts will allow sales agents to continue to receive their owed residuals following termination for any reason. Our review process can make sure these business contract provisions are fair for both parties. If one party feels that it isn’t, then revisions can be made following negotiations.
Regardless of your type of contract, an ISO agreement will include clauses about what revenue they share in or collect residuals from. For your financial interests, you’ll want to check the fine print to ensure that the ISO shares in all revenue, whether it’s a flat fee or percentage. Otherwise, an ISO can raise their prices on a merchant they don’t share revenue with. Even a basic contract review will ensure that payment terms are fair and understood.
Choice of Law and Party Language
The laws of a given jurisdiction can make all the difference when it comes to how legal contracts are interpreted and enforced. This is why it’s always recommendable for merchants and ISOs to work with each other in a local setting. This way, the legal language can be understood by both parties, at least with a legal review. For agreements between businesses with a long distance between them, a choice of law provision can state which jurisdiction’s legal language will be followed in the event of a dispute where one party prevails over another.
Of course, our legal services can also help with general legal document review. Any new contract should provide specific details about ownership rights, the responsibilities of both parties, limitations or indemnification of liability, and confidentiality agreements, just to name a few general considerations. Our law firm can help you secure a contract that serves your best interests from the drawing process all the way up to the signing. Contact us for a free 15-minute consultation if you need document review or advice.
DISCLAIMER: The information on this website is for general information purposes only. Nothing on this site should be taken as legal advice for any individual case or situation. This information is not intended to create, and receipt of viewing does not constitute an attorney-client relationship. Prior results do not guarantee a similar outcome.
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No matter what your litigation or legal needs are, we’re available for free 15-minute-long consultations. We can identify what kind of help you’ll need and figure out a plan that works for you.