In this episode, hosts Elaina and Kevin Smith tackle the sweeping changes coming to Visa’s Level 2 and Level 3 interchange programs. You’ll get an inside look at how these programs originally incentivized B2B transactions with lower rates—if merchants supplied enhanced transaction data—and how, over time, shortcuts and “junk data” have led Visa to rethink the system completely.

Elaina and Kevin break down what Level 2 and Level 3 interchange really mean, the evolution and unintended consequences of these programs, and what the upcoming changes in Visa’s Commercial Enhanced Data Program (CEDP) will mean for ISOs, processors, and merchants. From a new assessment to the complete sunset of Level 2 for most merchants, discover why it’s crucial to adapt quickly and how these changes could impact revenue, reconciliation, and business strategies across the payments landscape.

If you’re involved in B2B payments—whether as a merchant, sales office, processor, or gateway—this is an episode you can’t afford to miss. Tune in for insights, practical advice, and the critical steps you need to take now to stay ahead of Visa’s evolving rules.

On this episode of Payments Ground Game, hosts Elaina and Kevin Smith pull back the curtain on the process of monetizing payments for ISVs entering the space. Inspired by a recent conversation with an ISV looking to transition from Stripe to a more lucrative payments partnership, Elaina and Kevin walk listeners through the critical questions and considerations every software vendor should explore before signing on the dotted line.

From understanding your business model and mapping out the payments process, to divvying up responsibilities like underwriting, risk, and customer service, this candid, "off-the-cuff" discussion covers the nuts and bolts ISVs need to navigate. The duo dives into the importance of knowing your card mix, choosing between cookie-cutter or custom pricing, and the often overlooked complexities of hardware certification and billing.

Along the way, they stress the value of slowing down negotiations, investing in expert consultants and attorneys, and having thoughtful discussions about risk and revenue shares—rather than jumping straight to price. If you’re an ISV thinking about getting into the payments game, or just want to avoid the biggest pitfalls, this episode is packed with practical advice, real-world scenarios, and the kind of questions you should demand answers to before you launch.

• (00:00:04) - Payments Ground Game: Monetizing Payments
• (00:08:26) - No PIN debit at checkout
• (00:10:03) - IsV liability discussed in financial terms
• (00:11:40) - Certification to a POS: The Best Path for Your Business?
• (00:15:25) - Marathon: Merchant Billing, Underwriting
• (00:17:38) - IsV Payments: Revenue Sharing
• (00:22:13) - Payment Services: Revenue Share and Schedule A
• (00:26:49) - How To Get Certified as a Payment Processor
• (00:29:38) - A Taste of Ben's

In this episode, hosts Kevin and Elaina Smith roll up their sleeves to tackle one of the biggest milestones in the payments world: securing a direct processing agreement and an acquiring bank sponsorship.

Whether you’re pondering the shift from sales-driven retail to a more wholesale, operational model—or you’re just curious about what it really takes to get your own BIN and board merchants directly—this conversation takes you through the practical realities, financial implications, and operational readiness you’ll need to make it happen. You’ll get firsthand insights on when to consider going direct, common misconceptions about profitability, and the critical elements banks look for before handing over the keys.

Plus, Kevin and Elaina don’t shy away from the fine print. They break down the structure of processing agreements, minimums, reserve requirements, and those sneaky extra fees—from kilobyte charges to compliance reporting. You’ll also hear their candid takes on building your underwriting, risk, and accounting teams, and why operational expertise is make-or-break for this next phase of your business.

If you’ve ever considered the leap into direct processing—or want to understand why so many ISOs struggle with the transition—this episode is packed with actionable advice, cautionary tales, and a few rants about the realities behind the numbers.

• (00:00:04) - Do You Need To Get Your Own Payment Relationship?
• (00:04:28) - What is a Direct Processing Deal?
• (00:06:17) - How to Get Your Own Bank Card
• (00:11:09) - Processing Agreement
• (00:13:41) - Do Minimum Interchange Rates Affect Business?
• (00:16:04) - What are the implications of elevator clauses in processing agreements?
• (00:18:39) - Payment processing agreements, service offerings
• (00:22:48) - Negotiating an Issuance Agreement
• (00:24:10) - What are we going to need for a direct-processing merchant?
• (00:30:19) - Direct Processing Advice