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E-commerce businesses often face a common dilemma when seeking a merchant account: whether to directly approach acquiring banks and payment processors or to collaborate with an Independent Sales Organization (ISO).
For those unacquainted with this term, an Independent Sales Organization, also commonly referred to as Merchant Service Provider (MSP), is a third-party entity that acts as an intermediary between merchants and acquiring banks or card schemes. Among other services, ISOs assist merchants in applying for a merchant account, provide consultancy services, offer value-added products, and monitor the processing activity.
In this article, I will go through 5 key benefits of opting for an ISO.
1. NETWORK & RELATIONSHIPS
ISOs’ main focus is to build and maintain strong and transparent relationships with acquiring banks. They can grant merchants access to partners and markets that may be difficult to reach independently. By partnering with an ISO, merchants gain more options to diversify their payment operations, ultimately saving time and effort as ISOs can efficiently facilitate the process.
2. EXPERTISE & SPECIALIZATION
ISOs understand the market dynamics as well as the whole application process. They are highly knowledgeable and well informed about the industry trends and the structural changes happening in this industry. Given the increasing complexity of due diligence by acquiring banks, having an experienced partner significantly enhances merchants' approval prospects. ISOs will maximize merchants’ chances of getting approved as they are aware of acquiring banks expectations, specific requirements, and risk policies. Furthermore, ISOs will constantly monitor their processing activity and make sure that merchants remain compliant over time,contributing to the longevity of the merchant account.
3. BETTER CUSTOMER EXPERIENCE
Unlike large financial institutions, which often process transactions for countless merchants, ISOs can provide more personalized support. Merchants will most probably get a dedicated account manager who understands their unique needs and preferences, facilitating smoother communication with acquiring banks and prompt resolution of issues.
4. NEGOTIATING POWER
ISOs have experience in negotiating complex deals. They can easily benchmark a specific opportunity against comparable deals. Their ability to negotiate favorable deals also comes from the fact that they represent a (large and diversified) portfolio of individual merchants. Stronger together, as they say!
5. BUSINESS OPTIMIZATION
The multi-acquirer approach helps merchants avoid dependency on a single provider, reducing the potential impact of technical disruptions or exposure to sudden changes in risk appetite. It also allows merchants to optimize approval performance, as they can route transactions to the acquirer with the highest approval rates, ultimately increasing their revenues.
CONCLUSION
In conclusion, Merchants will unlock significant value by partnering with an ISO. It will bring them more options, more chances of success in the short and long term, more revenue and superior support.
eFlow Processing is specialized in so-called “high risk” verticals. Our mission is to empower every legitimate business to succeed in a better way. We help merchants open merchant identification numbers (MIDs) at acquiring banks globally, ensuring aseamless payment processing experience. Additionally, we supply innovative chargeback prevention solutions, empowering merchants to mitigate fraud and chargeback risks and enhance their financial performance.
Interested? We invite you to fill out our pre-check form online and we will get back to you within 24 hours: https://eflowprocessing.typeform.com/precheck
Sincerely,
Benjamin Joyeux
CEO & Founder of eFlow Processing
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