Payment Processing Agreements: Key Provisions for Retailers, Banks, and Payment Processors
Recording of a 90-minute CLE video webinar with Q&A
This CLE course will provide counsel with the tools to understand and negotiate payment processing agreements (PPAs). The panel will break down the many layers in accepting and processing payments from major card networks down through banks, third-party payment processors, sales channels, and merchants, as well as provide an understanding of the roles and legal responsibilities of each party on issues relating to regulatory compliance, card network compliance, data security, confidentiality, exclusivity, indemnification, fee structures, discount rates, interchange, and reserves.
Outline
- Payment processing agreements: understanding the parties and their roles
- Standard provisions: what you should expect to see in a PPA
- Issues for review
- Regulatory compliance
- Card network compliance
- Data security responsibilities
- Assignment rights; subcontractors
- Confidentiality
- Exclusivity
- Fee structures (discount rates, interchange, reserves)
- Indemnity obligations
- Additional terms and conditions incorporated by reference
- Data protection: reviewing internal controls to ensure compliance with the PPA
Benefits
The panelist will review these and other key issues:
- What are the roles and responsibilities of the banks, card networks, payment processors, and merchants under a PPA?
- Which provisions in standard form PPAs are problematic for vendors and which are negotiable?
- What are the parties' obligations concerning data security under the PPA, and how might the merchant limit its exposure?
- What does the merchant need to understand fee structures and financial liability under a PPA?
Faculty
Leah M. Campbell
Senior Attorney
Bradley Arant Boult Cummings
Ms. Campbell has significant experience representing financial services and insurance company clients in both federal... | Read More
Ms. Campbell has significant experience representing financial services and insurance company clients in both federal and state courts, as well as before state regulators. She has advised national mortgage servicers on FDCPA claims, loan finance companies on UDAAP claims, and banks on OFAC- related issues. In addition, Ms. Campbell has provided intellectual property guidance in M&A and corporate structuring matters and advised on GDPR implementation and cross-border encryption issues. Prior to joining the firm, she served as senior counsel in the Cyber/Intellectual Property/Information Technology group for Deutsche Bank AG.
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Theodore F. Monroe
Principal
TFM Law
Mr. Monroe’s practice focuses on litigation and counseling in the payments, credit card processing, e-commerce,... | Read More
Mr. Monroe’s practice focuses on litigation and counseling in the payments, credit card processing, e-commerce, direct response marketing and Federal Trade Commission enforcement areas. His recent actions include representing merchants recovering funds from processors, structuring processing relationships to comply with Card Brand requirements, drafting and negotiating contracts involving payment facilitators and ISOs, and representing continuity merchants in compliance and litigation issues. Mr. Monroe has represented numerous companies in suits brought by the Federal Trade Commission and obtained excellent results for firms in the digital products, loan modification, government grant, and nutraceutical industries.
Linda C. Odom
Partner
K&L Gates
Ms. Odom concentrates her practice on representing banks, retailers, processors, service providers, cryptocurrency,... | Read More
Ms. Odom concentrates her practice on representing banks, retailers, processors, service providers, cryptocurrency, blockchain, and other technology companies in the payments, Fintech, and related spaces. She has handled a myriad of complex national and global agreements for payments companies, banks, retailers, program managers, and processors. Ms. Odom is experienced in strategic relationship, program development and management, payment processing, licensing, software development, data processing outsourcing, intellectual property, and e-commerce matters and related regulatory matters. She is experienced in developing, implementing, and supporting emerging payment, cryptocurrency, prepaid, credit and debit card programs, and in addressing their regulatory and payment card network compliance issues. She has helped numerous emerging and traditional payments companies and merchants structure their payments products and services to maximize revenue, minimize their regulatory footprint, and reduce fraud losses. Ms. Odom assists a number of national retailers with their payment card processor, acquiring bank and payment card network relationships. She regularly advises companies on GLBA and PCI compliance, data security, and data breach response.
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