Behind the Shutdown: What Every Payments Professional Should Know About Merchant Terminations, Fraud, and Sustainability

Why do some high-risk merchants process for years while others get shut down overnight—often without warning or explanation? And why are so many payment professionals blindsided when portfolios collapse or lawsuits emerge from deals that looked solid on paper?

In this episode of The Payments Experts Podcast, Global Legal Law Firm Managing Partners Christopher Dryden and James Huber, along with Chief Operating Officer Jeremy Stock, pull back the curtain on the hidden risks, legal traps, and fraud schemes affecting agents, ISOs, processors, and merchants across the payments ecosystem.

From ISO Advocates to Merchant Defenders

The payments landscape has evolved. Where our law firm once primarily represented ISOs and processors, we now find ourselves increasingly defending merchants—many of whom were set up for failure from the start. The most common thread? Merchants signing processor agreements based on price alone, without reviewing key terms, reserve clauses, or termination rights.

Even large-scale B2B operators processing tens of millions annually often don’t realize that processing terms are negotiable—until their funds are frozen and they're locked out of access with no legal recourse.

The Dark Side of the Industry: Identity Fraud & Fake Merchants

We reveal shocking cases from the litigation trenches, including one involving an identity-theft ring run through merchant boarding. Agents were paying hairdressers, personal trainers, and gig workers $500 for their personal info—then opening fake accounts processing millions in transactions.

One courtroom deposition saw a series of “business owners” take the stand, each testifying they had no idea their identities were used to open merchant accounts. The opposing attorney—realizing the case was unraveling—sweated through his shirt and dismissed the lawsuit on the spot.

This isn’t rare. It’s happening more often than most in the industry are willing to admit.

Sustainable Agents vs. Churn-and-Burn Models

There is a better path forward. The most successful agents we work with aren’t chasing volume—they’re building durable portfolios by matching merchants with appropriate risk partners, vetting compliance, and establishing transparent expectations.

One seasoned agent told us, “I only have 15 merchants. That’s all I need.” He’s thriving—not because of quantity, but because his relationships are clean, compliant, and long-term.

What Every Merchant and Payments Partner Must Watch For

• If your processor won’t clearly define the relationship, it’s a red flag.
• If you’re boarding merchants without reviewing agreements, you’re inviting liability.
• If you’re an ISO unaware of who’s underwriting your downstream agents, you’re at risk.

The tools to succeed are available—banking relationships, contract negotiation, legal oversight—but they require intention. We’ve spent 20 years building these networks to help merchants, ISOs, and agents stay out of court and in business.

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

Don’t become the next case study in bad processing decisions.
Subscribe now to The Payments Experts Podcast for real-world insight from attorneys who live and breathe the payments space.

🔗 Listen here: https://www.globallegallawfirm.com/podcasts/

A payments podcast of Global Legal Law Firm

Stablecoins & the $27 Trillion Shift: How Digital Dollars Are Reshaping the Payments Industry

The payments industry is undergoing a seismic transformation—and this time, it’s being led by stablecoins. Once dismissed as fringe crypto experiments, these digitally native assets backed by fiat currencies are now powering over $27 trillion in payment volume annually. And major players—from JP Morgan to Stripe and PayPal—are taking notice.

In this episode of The Payments Experts Podcast, Global Legal Law Firm Managing Partner Christopher Dryden breaks down what this means for ISOs, PayFacs, fintechs, and merchant service providers navigating the future of money movement with Leo Arzumanyan, transactional attorney, and Jeremy Stock, Chief Operating Officer.

Why Stablecoins Matter to the Real Payments Economy

Unlike volatile cryptocurrencies, stablecoins offer near-instant settlement, programmable features, and transaction costs that are a fraction of traditional rails—often just pennies compared to $25–$50 wire transfer fees. As Dryden puts it:

“The cool thing about stablecoin is it's actually bringing some certainty into cryptocurrency that has never been there.”

Highlights from This Episode:

• The Rise of Institutional Adoption: Why banks like JP Morgan are launching their own stablecoins
• Regulatory Clarity at Last: How the Genius Act has opened the door for enterprise use cases
• Smart Contracts & Compliance: How blockchain-backed programmable money enables automatic payments with built-in audit trails
• Stablecoins vs. Crypto Arbitrage: The critical difference in value consistency—and why it matters to merchants, not traders
• What It Means for ISOs and PayFacs: Opportunities in settlement, remittance, chargeback mitigation, and real-time funding

Who Should Listen?

This episode is essential for:

• ISOs and acquirers curious about next-gen processing rails
• Fintech founders building money movement platforms
• Merchant service providers looking to cut costs and offer faster settlement
• Compliance teams evaluating the transparency advantages of blockchain
• Developers and operators exploring smart contract automation in payments

The future of payments is faster, cheaper, and programmable—and stablecoins are leading the charge.
Subscribe now to The Payments Experts Podcast for real-world analysis at the intersection of law, fintech, and merchant services.

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

Visit globallegallawfirm.com to learn more.

A payments podcast of Global Legal Law Firm

The High-Risk Processing Trap: How Merchants Are Getting Exploited

In the fast-moving world of high-risk payment processing, what looks like a lifeline can quickly turn into a liability. For merchants operating in regulated or fringe industries—think peptides, nootropics, coaching, supplements, adult, or subscription models—finding a processor willing to approve them often feels like a win. But behind that approval, a darker reality is unfolding: frozen funds, surprise fees, and reserve manipulation.

In this episode of The Payments Experts Podcast, Christopher Dryden and James Huber, Managing Partners at Global Legal Law Firm, Join Director of Operations, Jeremy Stock to expose and explain how high-risk classification has evolved—from a basic ecommerce label into a broader, more dangerous category often shaped by regulatory pressure, brand sensitivity, and chargeback profile.

Behind the “Approval”: The Mechanics of Exploitation

We dig into one of the most abusive tactics in high-risk processing: reserve draining. Here's how it works:

• A processor holds back six or even seven figures in reserves under the guise of chargeback protection.
• Then, behind the scenes, they initiate repeated debits to closed accounts, triggering $25–$35 rejection fees per failed attempt—all deducted from the merchant’s reserve.
• Reporting tools are suddenly disabled or restricted, leaving merchants unable to validate charges or defend themselves.

The result? Thousands in manufactured fees, no visibility, and no clear pathway to recourse.

An Industry Shaped by Short-Term Thinking

This isn't just about rogue processors. The entire high-risk ecosystem is suffering from a trust deficit:

• Sales agents chase fast commissions, not long-term merchant relationships.
• Banks have pulled back after being burned by bad portfolios and compliance blowouts.
• Merchants, desperate for approval, often sign without legal review, unaware of the risks embedded in their own agreements.

With Visa’s Acquirer Monitoring Program (VAMP) taking effect, scrutiny is increasing, and high-risk options may narrow even further. The compliance bar is rising, and processors with poor internal controls—or those exploiting risk merchants—will soon face more pressure from upstream acquirers and card brands.

What Merchants Should Demand Now

In this environment, getting approved isn't enough. Merchants must seek out processors and partners who:

• Maintain direct relationships with sponsor banks
• Offer transparent reserves and clear reporting
• Communicate openly when issues arise
• Allow merchants to defend disputes and access logs in real time

Long-term survivability in high-risk processing isn’t about finding any approval—it’s about finding the right one.

If you operate in a high-risk vertical or manage merchants in sensitive industries, this episode delivers hard truths and real strategies for staying protected.
Listen now on The Payments Experts Podcast, hosted by Christopher Dryden and James Huber, and visit globallegallawfirm.com for legal strategies that keep your processing relationships sustainable—and your funds secure.

**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