Typically covers commission structure and timing, exclusivity of submitted merchants, non-solicitation of the funder’s existing clients, and representations about how leads were obtained. That last clause is where compliance obligations reach the broker contractually rather than only through regulation.
Related terms
ISO
A firm that sources merchants and places their files with funders, earning points on funded volume without deploying its own capital.
Points
The broker or ISO commission on a funded advance, expressed as a percentage of the funded amount.
Prior express written consent
The standard of permission required for certain marketing calls and texts to wireless numbers under the TCPA.
Clawback
A funder recovering commission already paid, typically when a merchant defaults early in the term.