Glossary

ISO (Independent Sales Organisation)

An Independent Sales Organization (ISO) serves as a vital intermediary between merchants and the banks or credit card networks that handle payment processing. Although ISOs themselves do not process payments directly, they are authorized and regulated entities that resell the services of established, larger payment processors under their own brand names.

ISOs provide a wide array of services essential for businesses to accept card payments. These services include setting up merchant accounts, supplying the necessary technological infrastructure like Point of Sale (POS) systems and card readers, and offering ongoing customer support and account management. Beyond these basic services, ISOs often extend additional financial services such as business loans or merchant cash advances, which are based on the merchant's credit card sales volumes.

One of the standout benefits of partnering with an ISO is the flexibility and personalized service they can provide. ISOs typically cater to specific industries or sizes of business, offering solutions that are more closely tailored to the particular needs of these businesses than the more generic offerings of larger processors. This might include competitive pricing models, specialized equipment, or software integrations specific to certain industries.

For small to medium-sized businesses, especially those that may not have sufficient transaction volumes or the bargaining power to negotiate directly with large payment processors, ISOs are particularly beneficial. By pooling the needs of numerous smaller merchants, ISOs can secure more favorable terms and rates, which might otherwise be unattainable for individual businesses on their own.

Overall, ISOs are instrumental in broadening the accessibility of payment processing solutions, enhancing market competition, and driving innovation within the merchant services sector. They play a crucial role in supporting a diverse range of businesses, particularly those considered high-risk or those that are too small to directly engage with big financial institutions, ensuring that these businesses can thrive in a competitive marketplace.

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