An ISO (Independent Sales Organization) is a person or a group of persons that are contracted by a credit card processor like North American Bancard Agent Program or acquiring bank to sell financial services to merchants that want to process credit cards or need working capital. ISO Agents act like "middle men", connecting businesses to merchant account providers. There are two types of ISO's in the credit card processing industry: Registered (essentially a merchant sales agent) and Unregistered (more like an independent company).
An ISO (Independent Sales Organization) is a person or a group of persons that are contracted by a credit card processor like North American Bancard Agent Program or acquiring bank to sell financial services to merchants that want to process credit cards or need working capital. ISO Agents act like "middle men", connecting businesses to merchant account providers. There are two types of ISO's in the credit card processing industry: Registered (essentially a merchant sales agent) and Unregistered (more like an independent company).
Many professionals stay as unregistered ISO for the following reasons: 1) A lengthy, thorough, and expensive application process. 2) Both personal and professional history are closely scrutinized.
These characteristics are expected from an ISO Merchant Agent:
- Credit card industry knowledge.
- Excellent communication skills.
- Sales and cold calling experience.
The Best Companies for a Successful ISO Merchant Agent
Besides the obvious financial benefits, there are many factors an ISO should consider before joining any merchant account provider.
Access to the High Risk Market:
Most financial institution are selective about the businesses to which they provide merchant accounts. To reduce risk, some merchant account processors limit approval to merchants in its geographical area, those with a physical retail storefront, or those that have been in business for 2 years or more. Not accepting High Risk Merchants (more prone to to charge-backs and credit card fraud), could leave a gaping hole in an ISO's ability to provide services. The best companies for ISO Agents are those that allow Independent sales organizations to attract and sign merchants from a wide range of profitable markets with ease.
Fast Merchant Account Approvals:
Same day, 24hrs. and 48hrs. approvals are essential in this competitive environment. Hassle free termination policies are also important in the event that a merchant decides to cancel services.
Marketing Support:
ISO Agents needs a high degree of marketing and sales support to engage merchants in a compelling way. The list of marketing materials include well designed color brochures, business cards, an optimized website, etc.
Tech Support:
Your merchants need working credit card terminals (retail stores) and functional software (online businesses). They have to be trained by a knowledgeable technical staff who can also assist them in case of system failures.
To Wrap up:
Successful ISO Merchant Agents are those who resell for smart and honest merchant account providers. Trust is a key factor in any business relation but it is especially important in the credit card processing industry. Merchants have many options to choose from when it comes to opening a merchant account. ISO agents need to build and sustain a special bond with the clients in order to be successful in the long run. But all your personal efforts are meaningless if the merchant account provider you are reselling for doesn't perform his part of the deal: delivering high quality merchant processing services in a consistent manner. There are many good companies to partner with so take your time, do your research, and ask the hard questions on your first meeting. Good luck!
At NAB, we understand your specific needs, especially in today’s ever changing and hyper-competitive market.
Programs, products, support and services designed specifically for independent agents. Our commitment is to you. Helping you build and grow your portfolio.
We continually strive to go above and beyond to ensure our Agents receive the support they need to reach their peak potential. Ultimately, our goal is to exceed your expectations of what it means to be a truly great partner.
3496