RFC has loaned to ISOs processing thru all the leading Processors.
Benefits to Processor: In addition to the obvious benefit to an
ISO in being able to obtain working capital, RFC funding benefits
a Processor:
- Growing ISOs add merchants and transactions for
both the ISOs and the Processor, so both gain revenue from the
additional transactions,
- RFC makes money available to ISOs without
having to tie up the Processor's capital, and
- RFC funding enables the Processor to avoid a
conflict of interest situation where a Processor would be both a
creditor and a supplier of processing to the ISO, to avoid the issue of "lender liability" (see link) and FASB Int 46 (12/03) (ARB #51)
- By participating in the growth of the ISO, the
Processor is gaining working capital and growth with no adverse impact
on its balance sheet.
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