Verbal Contract with ISO for Privately Owned ATMs

Posted By: THSCPA

Verbal Contract with ISO for Privately Owned ATMs - 11/24/14 07:37 PM

We have run into a couple customers that allow ISO's to place ATMs in their facilities (restaurants, etc). They claim that they only have a verbal agreement with the ISO. I am curious what others are doing in this type of situration?

I contacted the ISO and they say there is no legal requirement to have a written agreement.
Posted By: Pat Patriot Act

Re: Verbal Contract with ISO for Privately Owned ATMs - 11/26/14 12:35 PM

It is likely true that it is not legally required; however, from a BSA/AML perspective that would raise the risk level of your customer. It would be prudent for you to document your due diligence on the ISO to ensure they are reputable, especially if the credits will be flowing through your institution.
Posted By: rlcarey

Re: Verbal Contract with ISO for Privately Owned ATMs - 11/26/14 12:52 PM

Does the OP mean they just put an ATM on site and they pay the restaurant a monthly fee or some similar payment and the restaurant has nothing to do with the actual ATM operation????