ISO (Independent Sales Organization)

ISO (Independent Sales Organization)

An Independent Sales Organization (ISO) is a third-party payment processing company authorized to handle merchant accounts for credit card processing.

Not just anyone can establish an ISO. These companies go through stringent vetting processes from the acquiring banks that they develop relationships with. 

These processes include reviewing security practices and ensuring the legitimacy of the business. 

After this process is completed, an ISO is said to be a ‘registered ISO’ that is sponsored by the bank. 

An ISO can develop relationships with multiple banks, who might each have certain areas or industries they specialize in. 

Advantages of Working with an ISO

Some businesses may not even be aware that ISOs exist and may choose large processors like PayPal or Stripe simply by default. By choosing an ISO, businesses can usually benefit from overall lower costs of processing. 

An ISO is structured so that it allows the best possible customer experience for the businesses. You are more likely to receive a high level of customer service. 

They may offer value added tools that are included with the cost of processing. 

Some examples of this would be:

• Customer Relationship Management (CRM) Tools
• eCommerce platforms and customer portals
• Powerful data analytics and Reporting 

These features add technology tools that can help drive revenue and inform your business decisions. 

Working with an ISO may also give you access to payment processing hardware that your business needs. 

If you are establishing a credit card processing account for your business or are looking to make a change, consider choosing an ISO. 

ISOs can help you realize savings in processing costs, give you access to tools that support your business, and provide you with better customer service than the industry giants.