What is an Independent Service Organisation?
An Independent Service Organisation, or ISO, is a third party company authorised to sell payment processing services on behalf of acquiring banks or payment processors. They act as intermediaries between merchants and payment providers.
What do ISOs do for merchants?
ISOs help merchants set up payment accounts, choose suitable processing solutions, and provide ongoing support. They often handle onboarding, pricing discussions, and customer service.
How do ISOs make money?
They typically earn a share of the fees generated from the merchant’s payment processing activity. This may include a markup on transaction fees or a revenue share agreement with the processor.
Do ISOs handle payment processing themselves?
No. ISOs do not usually process transactions directly. Instead, they partner with licensed acquirers and processors who handle the technical and financial aspects of payment processing.
Why do merchants work with ISOs?
Merchants work with ISOs for personalised support, flexible pricing options, and access to multiple providers. ISOs often tailor solutions based on the merchant’s size, industry, and risk profile.