SWIPE ACADEMY - CONFIDENTIAL AGENT RESOURCE
=================================================================
SPONSOR BANK LIABILITY MAP
=================================================================

Understanding who holds the bag when a deal goes bad.

1. The Merchant (Initial Liability)
If a chargeback occurs, the funds are debited from the merchant's DDA.

2. The Processor/Acquirer (Secondary Liability)
If the merchant goes bankrupt, closes their account, or empties their DDA, the Processor is legally required to make the cardholder whole. 

3. The Sponsor Bank (Ultimate Liability)
If a massive aggregator or processor goes under due to systemic fraud, the Sponsor Bank (Wells Fargo, BMO, Esquire) takes the catastrophic loss. This is why underwriting rules are dictated by the Sponsor Bank, not the sales rep.

*AGENT TAKEAWAY: You carry ZERO financial liability for merchant losses. The Sponsor Bank takes the risk; you take the margin. Protect your underwriter's time.*