Subject: LAW
Leap Payments, Top Elavon MSP, Charged For Ordinary Losses On Merchant Accounts Despite Zero Liability MSP Agreement
AUSTIN, Texas, March 10, 2020 /PRNewswire/ -- Elavon sent a one-page letter to Leap Payments on November 26th, 2019 stating that $391,800 in merchant losses allegedly suffered by Elavon would be passed through to Leap Payments. Elavon claims that Leap Payments failed to "verify the identity of all sales representatives." In fact, the sales representatives and their parent office's identity were clearly listed on every merchant account application and detailed in the eSignature documents provided with each and every merchant application. It appears that Elavon is looking for ways to offset ordinary merchant losses by attacking long term MSP sales partners despite this violation of Leap's zero-liability MSP agreement.
Leap Payments was recognized at Elavon's annual MSP conference in 2019 as the #1 MSP/ISO in the Western Region for merchant account activations and has processed billions of dollars in credit card transactions through Elavon/US Bank via thousands of merchant accounts. As a zero-liability MSP, Leap Payments never assumes liability for underwriting merchant accounts, chargeback management or loss prevention activities in any of the relationships with banks and processors.
Will Detterman commented: "We work with many different banks and acquirers and every single agreement with our partners states that we have zero liability for ordinary merchant losses sustained by referred accounts, since we are not set-up to underwrite and monitor accounts internally. This is a typical business model within our industry known as a registered Merchant Service Provider (MSP)."
Will Detterman continued, "Elavon, our 10-year partner in the credit card processing space, has tried to inflict the maximum pain possible by coming after Leap just before the holidays and charging us for chargeback losses. This should rattle the cage of every Elavon MSP, because if they can do it to one of their top partners, they will be emboldened to do it to anyone. I was able to sleep at night because my sales office contractually does not underwrite accounts, manage chargebacks or engage in loss prevention activities. We rely on Elavon and our processing partners for these services.
"It's alarming and sad that Elavon's loss prevention department is looking for scapegoats and has pushed Elavon to extreme measures to attack their partners and violate the very nature of their agreements."
Leap Payments has been forced to seek legal counsel and has filed for arbitration in the state of Georgia to defend its interests since Elavon has been unwilling to budge from its position.
About Leap Payments
Leap Payments was founded by payments industry veterans to help small and mid-sized businesses lower their credit card processing costs. We approach the payment industry with a commitment to long-term relationships with our customers, customized solutions and a consultative approach. Our goal is to help our customers find the right solution at the best available price. Our solutions let small and mid-sized businesses take advantage of the same low rates once available only to the largest businesses. We offer U.S.-based customer service 24 hours a day, 7 days a week, ensuring the highest level of personal service. For additional information, visit www.leappayments.com.
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Contacts
Leap Payments
Will Detterman
CEO and Founder
Email: [email protected]
Office: (800) 993-6300
SOURCE Leap Payments
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