As a business that processes credit card transactions for merchants, what are your rights when the merchant goes bankrupt? Can you recoup the value of chargebacks from the merchant? Terminate the processing relationship? Take other action to protect yourself from the bankrupt merchant?
Acquirers have been processing card transactions for merchants for a long time, and merchants have been going bankrupt for just as long. So it would seem that the parties' rights would be all figured out by now. Guess again.