Your sponsor bank and processor agreements decide who owns the customer, who pays for fraud and how fast you can be shut off. We review and negotiate those terms so the commercial deal matches how your product actually moves money. You get an attorney-led markup and a flat fee, quoted before we start.
At a glance
- Practice
- Fintech
- Pricing
- Flat fee, quoted before we start
- Included
- 6 deliverables
- Process
- 3 steps, one named attorney
- Where we work
- Slack, email or a call
When founders call us
The moments that usually bring a company to us for this work.
- 01
A sponsor bank has sent its program agreement and wants it signed before your launch date
- 02
Your processor is asking for a rolling reserve or personal guaranty you did not expect
- 03
You are moving from a BaaS middleware provider to a direct bank relationship
- 04
You are adding a card program, ACH product or instant payouts to an existing platform
What you get
Scoped in writing before we start. One flat fee for all of it.
- Issues list on the bank program agreement or processor agreement, ranked by business impact
- Redline covering reserves, chargebacks, fees pass-through, indemnities and liability caps
- Allocation of program manager versus bank responsibilities for compliance, complaints and Reg E error resolution
- Termination, wind-down and customer migration terms so an exit does not strand your users
- Review of ledger, reconciliation and FBO account provisions
- Negotiation support on calls with the bank or processor's counsel
How it works
- 1
Scope the money flow
We map who holds funds, who touches the customer and which party each obligation should sit with.
- 2
Mark up and prioritize
We redline the agreement and separate must-have changes from points worth trading.
- 3
Negotiate to signature
We work through counterparty comments with you until the agreement is ready to sign.
Mistakes we help you avoid
The ones we see most often, and catch before they cost you.
- Avoided
Signing termination-for-convenience terms with no wind-down period, leaving customers without access to funds
- Avoided
Accepting open-ended reserve rights the processor can raise at any time without notice
- Avoided
Leaving Reg E error-resolution and complaint handling duties unassigned between bank and program manager
- Avoided
Agreeing to ledger and reconciliation obligations your systems cannot actually meet
Payments & Processor Terms: questions founders ask
In a typical bank partnership, the bank holds the charter and the deposits or issues the cards, and the fintech acts as program manager running the customer experience. The program agreement sets which party handles onboarding, compliance monitoring, complaints and marketing review. The bank keeps ultimate regulatory responsibility, so expect significant oversight rights in its favor.
Usually yes, though how much depends on your size, the bank's appetite and the product. Banks tend to hold firm on regulatory and oversight provisions but often move on fees, exclusivity, termination notice and liability allocation. Knowing which category each clause falls into keeps negotiations short.
Processors hold reserves to cover chargebacks, refunds and losses if a merchant or platform fails. The size and release schedule are commercial terms, and you can often negotiate caps, review triggers and release timing. The aim is to tie the reserve to real risk indicators rather than open discretion.
We draft and negotiate the contracts, and we flag where your structure may raise money transmission or other licensing questions. Whether a license is needed depends on the specific flow of funds and the states involved, so it is fact-dependent. We do not issue licenses or certify compliance.
Get a flat-fee quote for Payments & Processor Terms.
A short call with an attorney. You leave with a written scope and one fixed price.
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