HOW TO BECOME AN ISO
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Join the Merthan Industry ISO Program Today.
How do I become an ISO?
To become an Independent Sales Operator (ISO) selling Visa and MasterCard credit/debit card processing, you must be an Agent of an Independent Sales Organization that is registered as an BSP (Bankcard Services Provider) or MSP (Member Service Provider) with the Visa and MasterCard associations Sales Agents/ Professionals cannot register with the associations directly because Visa/MC are associations of banks, not individuals. Independent Sales Agents must register through a bank or an ISO.
How do I start? We at Merchant Industry will help support you and help guide you through the process. All Independent Sales Organizations selling Visa and MasterCard services must be registered with the Visa and MasterCard associations because without proper registration, an ISO will not be able to legally contract with a member bank. If you are not able to contract with a bank, you may not be able to protect your income should the bank or merchant portfolio be sold in the future.
Make Merchant Industry Your First Choice
The decision of which bank or ISO to work for is a personal one. First, you will need to know what you want from an ISO. Items to consider, and ask an ISO about, include specific markets served, benefits, training, leads, Internet processing, high-risk businesses, merchant help desk, the time it takes for a merchant application to be approved, and what percentage of merchants are turned down. You will also need to inventory what you can offer an ISO, such as industry knowledge, sales experience, cold calling skills, integrity, communication skills, etc.
You will want to inquire about what types of merchants a particular ISO serves and how it charges those merchants. The card associations charge merchants interchange. The interchange is the fee paid by the card accepting bank to the card issuing bank and is a percentage of each sale. ISOs compensate their agents with varying degrees of revenue splits beyond these costs. The rates are different for different types of merchants and industries. For example, a telephone order business will have a higher rate than a traditional storefront and who you sell to can affect your income potential. Also, many ISOs charge merchants transaction fees, statement fees, and monthly minimums, which may influence how and what types of merchants you prospect. Before contracting with an ISO you should be aware of their specific charges and policies in these areas.
Of course, you will want to inquire about a particular ISOs residual plan. Not only do you want to know if they offer residuals but if so, are they vested or non-vested? Are they for the life of the account or only for how long your work for that ISO? Are they contingent upon a quota? Do they take effect after a probationary period?