In December of last year Host Merchant Services reported on Worldpay’s termination of ISO residual payout.
And in classic payments bro fashion, the notifications were
- Vague
- Late (i.e. the ISO received the notification AFTER the payouts stopped)
- Written from the perspective that Worldpay was large and the ISO was small
We recently received a handful of new notifications that would appear to confirm that Worldpay is still up to the same ol’ tactics:
For starters these agreements were made between ISOs and Mercury, a company Worldpay acquired many years ago vis a vis their Vantiv acquisition.
But the language of the notification is baffling.
Worldpay is complaining that the ISO is no longer sending sufficient lead volume. Worldpay then makes the very long leap that this MUST be because the ISO is soliciting (i.e. moving the merchants elsewhere).
This is quite a stretch.
Maybe the existing accounts are churning off Worldpay because Worldpay has terrible support and keeps cranking fees? Maybe these merchants wanted value in exchange for their payment fees and opted to choose a software provider that’s bundling payments into their systems.
Maybe the ISO can no longer refer new business to Worldpay given the treatment of existing customers.
Has Worldpay’s agreement mandated that the ISO must have an exclusive payments relationship with Worldpay?
Not according to the original agreement that was shared with us.
The notification ends with no cure for the alleged breach, but just matter-of-factly states that the agreement is now terminated.
Except that even in acquisition, Worldpay is supposed to comply with the terms of this agreement:
Kinda wild that a company that’s lost $6B in annual value for the past four years is willing to be so aggressive to its channel. We wonder what other options Worldpay has here… international ecommerce? As if Stripe and Adyen don’t exist?
Worldpay needs to get some self-awareness, and quickly if it’s to survive.
As we read this dealer’s agreement, there would seem to be a case to be made out of the reseller class against Worldpay.
It is a shame what happened to Mercury as it has morphed into this giant company that does not care about employees, clients or partners. We dealers need to stand up to the payment bullies of the world that have destroyed our industry. If you have been affected by Worldpay cancellation of residuals reply and let’s join forces.
They should be sued !
The damages would need to be in the 9 figures. I can’t imagine the dealers represent more than 7 figures of revenue anymore.
Giving Paranoid Bro-y. So on brand.