Merchant Services Application/Agreement

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Question:

Must a merchant services application/agreement have a separate document or separate authorization that must be signed in order for the merchant processor to pull a credit report on the principals?

Answer:

If the principals are not going to be directly liable on the agreement, providing some sort of personal guarantees, then you would need written permission to pull a consumer credit report, otherwise you have no permissible purpose.

First published on BankersOnline.com 5/18/09