Independent Sales Organization (ISO)

Merchant Account Glossary I Independent Sales Organization (ISO)

An independent sales organization (ISO) is a company that is contracted by a third-party processor, acquiring bank, or other licensed entity of VISA and MasterCard to administer merchant and/or cardholder servicing.

ISOs also contract with one another depending on their size. Larger ISOs that are able to underwrite and accept the risk associated with their own merchant accounts often resell processing services to smaller ISOs by charging a buy rate for services. These ISO may also be referred to as aggregators.

Questions & Comments

On July 7, 2009 Monte said:

If you wanted to start your own ISO where would you start and how would you go about it?

Do all ISO's have to go to the same processing companies with their accounts that get and how are these companies?

On July 7, 2009 Ben said:

Hello Monte,

Starting your own ISO is an expensive and involved process. This site deals mainly with the merchant side of things more than the provider side.

The best way to educate yourself is to get a large cup of coffee, free up your schedule for a couple of weeks and then begin to go through the archives over at the The Green Sheet. I would suggest that you join the forum and subscribe to their mailings as well.

Join Newsletter

The information provided on Merchantcouncil.org is meant for informational purposes only and is posted without warranty. It does not replace or amend any information or guidelines set forth by card brands. Merchantcouncil.org does not provide electronic processing services. Please see our full terms of use.