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Independent Sales Organization | ISO Program for Merchants

Do you want to know what the primary role of an Independent Sales Organization or ISO is? Are you interested in how an ISO helps merchants? You’re in the right place! Just read this blog post and you’ll know.

What an Independent Sales Organization Is

An Independent Sales Organization is also referred to as ISO. However, you can also find it mentioned as a Member Service Provider or MSP. An ISO is a third-party company contracted by a credit card member bank to find, open and manage merchant accounts on behalf of the financial institution it represents.

Also, these organizations complete online payment transactions for small businesses, usually in exchange for a fee or percentage of sales. So, once agreed, the ISO can represent any financial institution with which it has an agreement.

The payment card industry defines an ISO as an individual or organization that’s not an association member to either Master Card or Visa. Instead, it has a banking card relationship with an association member. This relationship implies the issuing and acquiring of functions, delivering customer service, negotiating leases or arranging terminal purchases, and soliciting card holders.

It’s important to note that ISOs and MSPs aren’t banks. It’s the acquiring (processing) bank contracted with the target ISO that handles the merchant’s money. A processing bank (member of Visa and/or MasterCard) like this should sponsor each ISO/MSP so that the latter can be registered by these Credit Card Associations.

Specifically, ISOs are also called MSPs when they deliver services related to financial transaction processing. There’re ISOs that can offer merchant accounts to riskier merchants. In this case, they’ll require fees that’re higher.

Independent Sales Organization: FAM’ ISO Program

By 2001, ISOs were reported to be responsible for opening almost 80% all merchant accounts available today. Did you know that ISOs/MSPs can partner with sales agents that can help them sign new merchants?

Working with First American Merchant, ISO agents enjoy the same upfront bonuses as when going directly through the processor. Additionally, FAM doesn’t require these agents fill out 20 or more agent agreements and have 20 different relationships. They just need to submit all their deals to one source, regardless of the processor.

First American Merchant offers unique payment processing solutions to virtually all types of businesses. FAM is an award-winning merchant financing provider and processor that holds an A+ rating with the BBB and specializes in the high risk space. What’s important, First American Merchant offers a special Independent Sales Organization program.

Thanks to the ISO program offered by FAM, you can:

Offer your clients multiple payment technology solutions companies

  • Fast start bonus
  • Up to 50% residuals
  • CRM portal for agents
  • Online training

As you see, ISOs build an important bridge between a credit card processing network and merchants. They explain the terms and rates of a merchant account or cardholder relationship. Once the merchant has completed the merchant account application, the ISO either submits the paperwork to an acquirer for underwriting or underwrites the account internally.

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