Merchant Account Provider: Frequently Asked Questions
There are several keys to success as a merchant, one of which is offering the right payment options. To acquire these options, most merchants consult with payment account providers known as independent selling organizations (ISO). If your business needs payment options, but you are not sure how ISOs work, finding the right provider can be difficult.
If you have questions about the function of ISOs and merchant accounts, the answers below can help.
Are an ISO and a MSP Different?
No. An ISO and a merchant service provider (MSP) are the same type of entity. Independent selling organization is a technical term for what independent providers of merchant accounts do: sell payment accounts independent of other parties to the merchant account process, such as banks, gateway providers and credit card companies.
How do ISOs Function?
To become operational, an ISO must be sponsored to a credit card company by a bank. If the ISO is approved to provide merchant credit accounts, the bank will process the transactions for the accounts. To be accepted and approved for sponsorship, an ISO must display excellent financial stability and business planning.
What Types of Payment Processing Does an ISO Offer?
ISOs typically offer four types of payment processing: retail processing, which processes debit and credit payments using a card processing terminal; mail order / telephone order (MOTO) processing, which processes mail and telephone orders using a card terminal or a virtual terminal; Internet processing, which processes credit, debit and electronic check payments that occur over the Internet; and wireless processing, which processes out of store debit and credit payments using a wireless card terminal.
How Does PayPal Ecommerce Differ from ISO Ecommerce?
There are four basic differences between ecommerce through PayPal and ecommerce through an ISO: an ISO usually charges lower fees, a PayPal account takes less time to setup, a PayPal account may be suspended for reasons beyond a business’ control, and an ISO is generally more accommodating to small businesses.
What Type of Fees Can I Expect From an ISO Account?
The fees you pay vary by ISO and account type. Most accounts involve the following basic fees: transaction fee, monthly minimum fee, gateway fee, statement fee and discount rate. The cost of these and other fees also vary by ISO and account type.
What Happens if I Terminate My Account Before My Contract Expires?
The stipulations and penalties for terminating an account vary by ISO. Standard protocol is for an ISO to require payment for the total amount of monthly minimum, statement and gateway fees still left in the contract period, plus a reasonable fee for the additional profit the account would have generated in the remaining contract period.
AVPS has Options and Experience You Need
If you need a merchant account provider that offers experience and top payment options, AVPS is the answer. With twenty-five years of providing small and large businesses with the best payment options, our industry experience and expertise are unparalleled. To learn what payment options your business needs to succeed, call us today.