The Payments Experts Podcast

Paul Hadfield shares his journey from college dropout to successful payment processor, emphasizing the importance of building sticky merchant relationships through technology and customer service rather than treating them as short-term revenue sources.  Enjoy this conversation with James Huber, managing partner of Global Legal Law Firm.
 
 • Started in payments in 2001 after answering a newspaper ad while contemplating dropping out of college
 • Built and sold his first ISO in 2013, then created another payment processing company focused on long-term business building
 • Transitioned from a pure sales approach to technology-focused solutions as the industry evolved
 • Created a cash discount application for Clover that now has approximately 7,000 active users
 • Observed how COVID changed merchant and consumer attitudes toward payment processing fees
 • Focused business strategy on restaurant industry where point-of-sale systems can function as a "central nervous system"
 • Recently sold his second payments company while maintaining an entrepreneurial role
 • Believes in fostering honest feedback from employees to drive continuous improvement
 • Values building businesses with long-term vision rather than short-term profit goals
 
 Contact Paul at paulhadfield.co or email him at [email protected].

Imagine starting your career in the basement of a dental office, slinging merchant accounts on 100% commission, and building that hustle into multiple successful payment processing companies. That's exactly what Paul Hadfield did after answering a newspaper ad that promised ongoing monthly residuals for each sale—a concept so appealing it prompted him to drop out of college.
 
 What separates Paul's approach from many in the payments industry is his fundamental philosophy: "Never lose a customer." While some processors view merchants as revenue sources to exploit with hidden fees and restrictive contracts, Paul built his businesses treating merchants as long-term partners. This perspective became increasingly critical as the industry evolved from simple terminal-based systems to sophisticated technology platforms.
 
 The conversation explores how the payments landscape has transformed dramatically over the past two decades. Around 2016-2017, Paul noticed a pivotal shift where technology began outweighing relationships and pricing as the deciding factor for merchants. This realization led him to develop specialized solutions like a cash discount application for Clover and focus intensely on the restaurant industry, where point-of-sale systems can function as a business's "central nervous system" when properly implemented.
 
 Perhaps most fascinating is Paul's observation about how the pandemic fundamentally changed merchant and consumer attitudes toward payment processing fees. Pre-COVID, implementing surcharges or cash discounts often met resistance; post-pandemic, these practices gained widespread acceptance as consumers became more understanding of businesses' need to offset costs.
 
 After building and selling multiple payment companies, Paul shares valuable insights about entrepreneurship, leadership challenges, and the delicate balance of providing honest feedback in organizations. Whether you're in the payments industry or running any business, his journey offers valuable lessons about building sticky customer relationships and adapting to technological change without losing your core values.

**Matters discussed are all opinions and do not constitute legal advice.  All events or likeness to real people and events is a coincidence.**

Visit Global Legal Law Firm today: https://www.globallegallawfirm.com/

A payments podcast of Global Legal Law Firm

Jeff and Hersh Moskowitz  share how their payment processing journey led to the creation of Tuzo (https://www.tuzorewards.com/), a revolutionary rewards program that helps ISOs build stronger merchant relationships and increase portfolio value.
 
 • Started in point-of-sale systems in 2009, primarily serving convenience, liquor, and tobacco stores
 • Pioneered dual pricing/cash discount methodology around 2012-2013 following the Dodd-Frank Durbin Amendment
 • Developed Tuzo as a solution to the "race to zero" pricing problem plaguing payment processors
 • Created a rewards program where merchants earn points based on processing volume that can be redeemed for luxury items and experiences
 • Merchants willingly accept higher processing rates to participate in rewards programs
 • Merchants activate faster when earning rewards and are less likely to switch processors
 • Sales process transforms from selling processing to "selling dreams" with rewards as the focus
 • Positive touchpoints replace traditionally negative interactions between processors and merchants
 • Book values increase with rewards implementation due to increased merchant stickiness
 • Merchant relationships strengthen when processors help fulfill aspirational goals like vacations or luxury items

Imagine turning every payment transaction into a positive experience for both merchants and processors alike. That's exactly what Tuzo Rewards has accomplished with their groundbreaking merchant rewards program.

Jeff and Hersh, the founders of Tuzo Rewards, take us on their journey from point-of-sale system developers to payment processing revolutionaries. After pioneering cash discount programs following the Dodd-Frank Durbin Amendment around 2012-2013, they recognized a fundamental flaw in the payment processing industry: the only time merchants contacted their processors was when something went wrong, creating an inherently negative relationship dynamic.

Their solution? Create a rewards program where merchants earn points based on their processing volume that can be redeemed for luxury watches, vacations, electronics, and more. The results have been nothing short of transformative. Rather than competing solely on price in the endless "race to zero," processors can now offer something genuinely valuable that competitors can't easily match.

Perhaps most surprising is how this program has reversed pricing trends. Merchants are willingly accepting higher rates (often moving from 3.5% back to 3.99%) just to participate in the rewards program. This creates a win-win scenario where merchants receive tangible benefits they truly value while processors maintain healthier margins. For ISOs and agents, the sales conversation shifts dramatically from "Let me save you money" to "What rewards would you like to earn?" - turning transaction processors into dream facilitators.

Ready to transform your payment processing business with a solution that creates positive touchpoints throughout the merchant relationship? Discover how Tuzo Rewards is changing the game by visiting tuzoRewards.com or reaching out to [email protected] and [email protected].

Visit us today: https://www.globallegallawfirm.com/

A payments podcast of Global Legal Law Firm

If you’re a merchant and you want help with chargebacks, this episode is for you!  Friendly fraud is anything but friendly for merchants. In this eye-opening discussion, expert payments attorneys Larry Haines and Bryce Van De Moere expose the growing epidemic of customers who receive goods or services, then fraudulently dispute legitimate charges with their credit card companies.  It’s chargebacks, baby – and they’re a growing problem.
 
 Banks allocate mere minutes to review chargebacks and overwhelmingly side with cardholders—approximately 97% of the time—regardless of evidence presented. For merchants left holding the bag, this creates a seemingly impossible situation. But there's hope in pursuing legal remedies directly against these fraudsters.
 
 The attorneys reveal powerful strategies for merchants to fight back, including litigation that can recover up to triple damages plus attorney's fees under California law. They explain how mechanics liens (which despite the name, aren't just for auto repairs) provide strong protection for anyone who provides labor or materials improving real property—from contractors to plumbers to classic car restorers.
 
 Most compelling is their insight into the psychology of these fraudsters. Many are serial offenders whose confidence grows with each successful chargeback, escalating from small disputes to brazen theft. Picture someone staying at a hotel for three weeks, paying a $10,000 bill, then disputing the entire charge despite completing their stay.
 
 For merchants tired of being victimized, this podcast offers a roadmap to recovery. With proper documentation and legal guidance, businesses can not only recover what's rightfully theirs but also develop a reputation that deters future fraudsters. The attorneys recommend focusing on disputes exceeding $5,000-$10,000, where the cost-benefit analysis favors legal action.
 
 Ready to stop letting fraudsters walk away with your products and services? Learn how to turn the tables and make them pay.

Visit Global Legal Law Firm today: https://www.globallegallawfirm.com/

**Matters discussed are all opinions and do not constitute legal advice.  All events or likeness to real people and events is a coincidence.**

A payments podcast of Global Legal Law Firm

Credit card processors and banks are putting merchants on the Match List without proper investigation or due process, even when merchants comply with removal requests for prohibited products.

• Merchants being placed on Match List for having inventory of prohibited products, even with no sales
• Banks failing to provide evidence of actual rules violations when challenged
• Match List fines starting at $200,000 are negotiated down through the chain while merchants still pay full amount
• Peptide research facilities being "blanket" matched despite operating transparently
• Banks and MasterCard showing indifference to wrongful Match listings
• Legal action often necessary as banks ignore reasonable requests for evidence
• Merchant processing agreements prohibit class actions, making legal recourse difficult
• Documenting all compliance efforts critical when facing potential Match listing

If you're facing Match List issues, document all communication, challenge banks to show evidence of processed payments for prohibited items, and consider legal representation to navigate the process.

**Matters discussed are all opinions and do not constitute legal advice.  All events or likeness to real people and events is a coincidence.** 

Visit us today: https://www.globallegallawfirm.com/

A payments podcast of Global Legal Law Firm

The world of payments is rapidly evolving, yet cryptocurrency remains largely trapped in investment portfolios rather than being used for everyday transactions. Derrick Hess of Zero Point, a veteran ISO with decades in the payments industry, believes this is about to change—and payment professionals will be the catalysts.

Cryptocurrency offers two game-changing benefits that could revolutionize merchant services: substantially lower transaction costs (around 1% compared to the 2-3%+ charged by traditional payment networks) and complete elimination of chargebacks. For high-risk merchants especially, these advantages could be transformative. What's missing isn't consumer adoption—millions already hold crypto in wallets like Coinbase—but rather the payment infrastructure that connects these wallets to merchant checkouts.

Hess envisions a future where customers simply scan a QR code at checkout, select their preferred cryptocurrency, and complete transactions that instantly convert to stablecoins like USDC, eliminating volatility concerns for merchants. This technology exists, but implementing it requires payment professionals who understand both the crypto ecosystem and real-world merchant needs.

The urgency for ISOs to embrace this evolution is heightened by another industry trend: integrated software vendors (ISVs) increasingly dominating the payments landscape. As Hess notes, "If you don't have a vertical software, you're running out of time." The traditional ISO who could once sell to nearly every business on Main Street now finds their addressable market shrinking dramatically as vertical-specific software bundles payments processing.

Despite the crypto market cap reaching approximately $2.7 trillion and projections of $10 trillion within 4-5 years, traditional financial institutions remain hesitant to fully engage. This creates an opportunity for payment professionals to position themselves as bridges between Web2 and Web3, bringing cryptocurrency payment solutions to merchants eager for lower fees and chargeback protection.

Whether you're crypto-curious or crypto-skeptical, this episode offers valuable insights into how blockchain technology is poised to transform the payments industry. Connect with Derrick Hess on LinkedIn or visit zeropointus.com to continue the conversation about the future of payments.

**Matters discussed are all opinions and do not constitute legal advice.  All events or likeness to real people and events is a coincidence.** 

Find Global Legal Law Firm today: https://www.globallegallawfirm.com/

A payments podcast of Global Legal Law Firm

Tom Lineen brings 25 years of payments industry wisdom to the table as he unpacks how WestTown Payments (https://www.WestTownpayments.com/) is transforming merchant services through banking integration. Having started at AuthorizeNet in 2000 as the 29th employee, Tom has witnessed firsthand the evolution from clearly defined industry roles to today's interconnected ecosystem.
 
 The conversation explores how Tom recognized an opportunity to partner with community banks that possessed direct card brand memberships but lacked the expertise to maximize their potential. This vision materialized in March 2020 when, despite pandemic uncertainty, WestTown Bank and Trust embraced his joint venture proposal. Unlike traditional sponsor relationships where banks and ISOs operate at arm's length, WestTown Payments became fully integrated with the bank, ensuring complete alignment on compliance and customer service priorities.
 
 Tom reveals how this structure proved particularly valuable when WestTown Bank was acquired by DART Bank in 2023. Through careful planning, they achieved a seamless transition where merchants experienced zero disruption—continuing to receive deposits and process transactions without interruption. This customer-first approach exemplifies the community banking philosophy that distinguishes their service model from national banks.
 
 The podcast delves into specialized verticals, particularly hemp and CBD processing, where WestTown's integrated bank model provides compliant solutions that national institutions won't touch. Looking forward, Tom shares his vision for DART 360, a comprehensive platform offering merchants access to checking accounts, loans, working capital, and other banking services alongside payment processing. This evolution represents the future for ISOs competing against Square and Toast—bundling financial services to transform thin-margin payment relationships into robust, multi-faceted partnerships.
 
 Industry professionals will appreciate Tom's insights on the upcoming Visa VAMP program changes scheduled for October 2023, which threaten to reshape the acquiring landscape, particularly for high-risk merchants. Connect with Tom on LinkedIn to learn more about how WestTown Payments can help payment professionals navigate today's evolving marketplace.

**Matters discussed are all opinions and do not constitute legal advice.  All events or likeness to real people and events is a coincidence.** 

Visit Global Legal today: https://www.globallegallawfirm.com/

A payments podcast of Global Legal Law Firm

The payment processing landscape is transforming dramatically, and nowhere is this more evident than in the changing relationship between processors, ISOs, and merchants. In this revealing conversation with the leadership team from Paisley, we dive deep into the future of payment processing and how innovation is reshaping the industry.

Remember when Card Connect was acquired by First Data, and later when Fiserv stepped in? According to our guests, this marked a pivotal moment when service quality plummeted for many ISOs. "It used to take a couple of hours same day to resolve issues. Now it takes four, five, six days," explains one Paisley executive, highlighting the catalyst for their entrepreneurial journey.

The team presents a fascinating metaphor that perfectly captures today's payment ecosystem: Paisley operates as a "nimble speedboat," able to quickly implement cutting-edge technologies and solutions. Fiserv and similar companies function as "big yachts" – dominant but slow to maneuver. And Visa? They're simply "the water" – the fundamental infrastructure without which nobody moves.

What sets Payzli apart is their innovative approach to merchant services. They've developed AI-powered solutions for review generation, chargeback mitigation, and streamlined operations. Their point-of-sale system engages customers through push notifications, collects feedback through simple questions, and uses AI to generate authentic reviews that merchants can push to Google – just one example of how they're transcending traditional payment processing.

The conversation takes a particularly interesting turn when discussing risk management and merchant communications. In an industry where funds can be held for weeks without explanation, Payzli emphasizes white-glove service and open communication channels, especially during sensitive situations like underwriting or risk holds.

Whether you're a payment professional, ISO owner, or merchant looking for innovative solutions, this episode offers valuable insights into how the industry is evolving and how companies like Paisley are carving out their place in a consolidating market. Discover why the future belongs not to the largest players, but to those who can adapt quickly while maintaining strong partner relationships.

Ready to learn more about Paisley's innovative approach to payment processing? Visit payzli.com or email [email protected] to connect with their team.

Visit Payzli online at payzli.com or email [email protected] to learn more about their partner-centric payment processing solutions.

*****
**Matters discussed are all opinions and do not constitute legal advice.  All events or likeness to real people and events is a coincidence.**  
*****

********

Visit us today: https://www.globallegallawfirm.com/

A payments podcast of Global Legal Law Firm

The traditional payment processing landscape is undergoing seismic shifts, and this provocative discussion with David Leppek, CTO of SignaPay, examines what many in the industry have been whispering about: are Independent Sales Organizations (ISOs) facing extinction?  

Major processors like First Data and Fiserv have been systematically pushing out their ISO channels, preferring direct relationships with software companies that now serve as the true acquiring partners. This consolidation creates a troubling gap in merchant services - who will advocate for higher-risk merchants when ISOs disappear? The legal experts at Global Legal Law Firm alongside Leppek explore how this shift might drive legitimate businesses underground or toward less regulated payment methods.  

The conversation delves into card brand policies that increasingly favor issuers over acquirers, creating fundamental conflicts of interest in how payment disputes are handled. A fascinating case study emerges around Visa's acquisition of Verify, which transformed a free chargeback prevention tool into a $45 per inquiry service - effectively killing a product that helped merchants avoid costly disputes.  

Cryptocurrency looms as a potential disruptor, though the panel debates whether its limited adoption after 15 years suggests inherent limitations or active suppression by incumbent payment networks. As one panelist memorably puts it: "My worst investment was getting into crypto. My second worst investment was selling it."
  
For payment professionals, merchants, and financial technology innovators alike, this discussion illuminates the power dynamics reshaping how money moves in our economy.  The future of payments may depend less on technology than on who controls access to the networks where value is exchanged.  Ready to navigate the changing payments landscape? Subscribe to the Payments Experts Podcast for more insights on how legal and technological shifts affect your business.


*****
**Matters discussed are all opinions and do not constitute legal advice.  All events or likeness to real people and events is a coincidence.**  
*****

Payment processing is undergoing a fundamental shift as major processors push out ISOs in favor of direct relationships with software companies, leaving high-risk merchants increasingly underserved and potentially driving transactions underground.

• Independent Sales Organizations (ISOs) face extinction as First Data, Fiserv and other processors cut ties with their sales channels
• Software companies have become the new acquiring partners, eliminating the need for traditional ISO sales forces
• Banks lack appetite for servicing high-risk merchants despite having the capability to do so
• ISOs traditionally serve as merchant advocates, helping businesses navigate complex compliance requirements
• Card brands' tightening fraud policies across multiple BINs make it harder to serve merchants with higher chargeback ratios
• Visa destroyed their Rapid Dispute Resolution system by acquiring Verify and turning a free service into a $45 per inquiry fee
• Chargeback systems show clear bias toward issuers over acquirers, creating conflict of interest in dispute resolution
• Cryptocurrency adoption remains limited despite being around as long as Uber
• Card brands likely want to position themselves within crypto ecosystem rather than be displaced by it
• Innovation in payment processing often gets shut down when it threatens established revenue streams

Visit us today: https://www.globallegallawfirm.com/

A payments podcast of Global Legal Law Firm

Julie Douglas, a 25-year veteran in the payments industry, shares how Dealer Pay (https://www.dealer-pay.com/team/) is revolutionizing auto dealership payment processing with innovative gateway technology and business efficiency tools. Her team has created software solutions that transform the traditional commodity of payment processing into valuable business intelligence across the five distinct operations within a dealership.

• Auto dealerships function as "five businesses under one roof" with complex payment needs
• Payment gateways serve as crucial tunnels for transaction processing, fraud mitigation, and interchange qualification
• Real-time fraud detection tools provide risk scores that help dealers avoid potential chargeback situations
• Integrations with dealer management systems enable data collection that improves operational efficiency
• Traditional payment processors often use a "smash and grab" model that damages industry reputation
• Future developments include integrating payables, creating unified platforms for financial management
• The industry faces compliance challenges with surcharging practices varying widely between states
• Customer feedback drives product innovation, unlike many software companies that resist enhancement requests
• Payments technology is evolving beyond simple processing to become comprehensive business solutions

Looking to modernize your dealership's payment processes with software that prioritizes security, efficiency, and customer experience? Visit dealerpay.com to learn more about our integrated solutions.

*****
**Matters discussed are all opinions and do not constitute legal advice.  All events or likeness to real people and events is a coincidence.**  
*****

Visit us at: https://www.globallegallawfirm.com/

A payments podcast of Global Legal Law Firm

Dive into the complexities of merchant processing and arm yourself with powerful insights shared by industry experts in our latest episode. As the landscape of payments continually evolves, business owners face unseen obstacles that could impact their ability to thrive. During our engaging discussion, we explore the hidden costs associated with merchant agreements, ensuring that listeners gain a profound understanding of what affects their processing rates. 

Learn about the myriad factors that influence processing terms, including trading volumes and product risks. Uncover the often-overlooked importance of having a supportive relationship with your payment processor, ensuring that you aren’t left stranded during challenging times. 

This episode equips you with the knowledge needed to negotiate effectively, emphasizing preparation and an understanding of industry standards that can dramatically impact your success. Our aim is to empower merchants, nudging you towards informed decision-making and offering actionable strategies for navigating the often murky waters of payment processing.

Join us as we delve deeper into effective practices for avoiding unfavorable conditions and building successful partnerships with your processors. Don’t let lack of knowledge hold you back – tune in now, and transform how you handle your merchant processing! Remember to subscribe, share this episode, and leave a review if you found value in our conversation.

David Goodale has 24 years expertise as CEO at Merchant-Accounts.ca and specializes in online and multi-currency payment processing, helping clients in Canada, the USA, UK and Europe.  

*****
**Matters discussed are all opinions and do not constitute legal advice.  All events or likeness to real people and events is a coincidence.**  
*****

A payments podcast of Global Legal Law Firm