Merchant Services

Insurance for Merchant Services Professionals

Protect your merchant services business from contract disputes, chargebacks, compliance issues, and data breaches. Get specialized coverage for payment processing professionals.

Unique Risks Merchant Services Face

Merchant services professionals face specific liability exposures that require specialized insurance coverage.

Contract Disputes

Merchants may sue over rate changes, contract terms, or service level agreements not being met.

Chargeback Liability

High chargeback rates or fraudulent transactions can result in significant financial liability.

Compliance Violations

PCI DSS violations, state regulations, and federal compliance issues can lead to fines and lawsuits.

Data Breaches

Payment data is highly valuable to hackers. Breaches can result in massive fines and lawsuits.

Regulatory Fines

PCI DSS violations can result in fines up to $500,000 per incident from card brands.

Professional Negligence

Incorrect setup, poor advice, or service failures can lead to merchant losses and lawsuits.

Essential Coverage for Merchant Services

These coverages are essential for protecting your merchant services business from common risks and regulatory requirements.

Errors & Omissions (E&O)

Professional liability for mistakes, service failures, and professional negligence.

  • • Incorrect merchant setup
  • • Poor rate recommendations
  • • Service delivery failures
  • • Contract disputes
  • • Professional advice errors

General Liability

Protection against bodily injury, property damage, and personal injury claims.

  • • Client injuries at your office
  • • Property damage during visits
  • • Slip and fall accidents
  • • Equipment damage
  • • Third-party injuries

Cyber Liability

Essential for businesses handling payment data and sensitive information.

  • • Data breach response
  • • PCI DSS violation fines
  • • Ransomware attacks
  • • Business interruption
  • • Regulatory compliance

Fidelity Bond

Protection against employee theft and dishonest acts.

  • • Employee theft of funds
  • • Fraudulent transactions
  • • Embezzlement
  • • Computer fraud
  • • Social engineering

Real Claims Scenarios

These are actual claims that merchant services professionals face. Without proper insurance, these could be devastating.

PCI DSS Violation

A merchant services agent failed to properly secure a client's payment system, resulting in a data breach. The card brands fined the agent $100,000 for PCI DSS violations.

Result: Cyber liability insurance covered the fine and breach response costs.

Contract Dispute

A merchant sued their ISO agent for $50,000 in damages after the agent promised specific rates that weren't delivered due to processing bank changes.

Result: E&O insurance covered the settlement and legal defense costs.

Employee Theft

An employee stole $25,000 in merchant funds by creating fraudulent transactions and pocketing the money before it was detected.

Result: Fidelity bond insurance covered the stolen funds and investigation costs.

Coverage Recommendations

Recommended coverage limits based on business size and merchant portfolio.

Small ISO

E&O Coverage $1M / $2M
General Liability $1M / $2M
Cyber Liability $1M
Fidelity Bond $25K
Annual Premium $3,000 - $7,000

Medium ISO

E&O Coverage $2M / $4M
General Liability $2M / $4M
Cyber Liability $2M
Fidelity Bond $50K
Annual Premium $7,000 - $15,000

Large ISO

E&O Coverage $5M / $10M
General Liability $5M / $10M
Cyber Liability $5M
Fidelity Bond $100K
Annual Premium $15,000 - $40,000

Protect your merchant services business

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