What’s Really in Your Agent Agreement? Legal Pitfalls Every Payments Professional Should Know

In the world of merchant services and electronic payments, contract pitfalls aren’t just inconvenient—they can be career-altering. Agreements that look standard at first glance often include fine print that chips away at residuals, restricts future business opportunities, or limits your rights to dispute unfair terms. Unfortunately, many ISOs and agents don’t realize the risks until it’s too late.

In this episode of The Payments Experts Podcast, produced by Global Legal Law Firm, seasoned payments attorneys Christopher Dryden and Leo Arzumanyan join Jeremy Stock to break down what every industry professional should be watching for in ISO and agent agreements—before signing on the dotted line.

Residual Revenue at Risk

Compensation clauses often sound fair—until you realize the residuals can vanish after termination, or that new fees introduced into merchant accounts might quietly reduce your take-home. Dryden warns, “Unless you've got some sort of residual revenue share pool calculation, how do you really know what you're getting?”

Many agreements lack transparent monthly reporting, and some include tight dispute windows or waiver provisions that prevent agents from contesting underpayments.

Restrictive Covenants That Go Too Far

Non-compete and non-solicitation clauses are often drafted far broader than what’s enforceable. Arzumanyan points out, “They make it so broad where just by executing the agreement, you might already start violating it from day one.”

These clauses can block agents from working with a wide—and sometimes ambiguous—range of processors, vendors, and affiliates, creating compliance traps from the outset.

Cross-Border Contracts and AI in Legal Drafting

The conversation also explores the growing complexity of cross-border agreements in a global payments landscape, and how emerging AI tools are starting to reshape how contracts are written and contested.

Why Legal Review Isn’t Optional

Too often, legal help is sought after disputes erupt. By then, the options are limited, and the damage is done. This episode offers practical, proactive guidance from payments law experts on how to spot red flags early, negotiate fairer terms, and protect your residuals, client base, and business autonomy.

If you’re serious about building a sustainable business in merchant services, this is essential listening.

Listen now to protect your portfolio and future-proof your payments career—with legal insights direct from the attorneys who specialize in the payments industry.

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

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A payments podcast of Global Legal Law Firm