ISO Partners: How They Work and What They Do
One way to grow as a business is to make it easy for your customers to pay you. An ISO partner can help you find the right payment solutions so you can spend less time dealing with accounting and more time focused on running your company.
An ISO, or independent sales organization, can be very technical in how they operate, but they play a critical role in helping businesses run. With the right ISO partner, you can get the tools you need to quickly accept different types of payments, handle large transactions, and provide stellar customer support.
Find out more about what an ISO partner is, why small businesses should consider an ISO partnership, and how to find the right ISO for your company.
What Is an ISO Partner?
An ISO, also called a merchant service provider, helps business owners process and accept various payment methods, such as credit cards, debit cards, ACH, and mobile payments.
They are not part of a card network, such as Visa or Mastercard, but instead work as a third-party payment processor to help ensure the payments industry runs smoothly. They make money through transaction fees and selling equipment and software.
An ISO partner is the middleman between a financial institution that handles the credit and debit card process and a merchant bank, which is where money is held before it hits your business account.
In other words, ISO partners help ensure that business transactions get from the buyer to the seller as smoothly as possible.
What Services Do ISOs Provide?
Besides processing payments, ISOs also provide other merchant services. They usually work with small businesses and companies that can’t obtain merchant accounts at banks for various reasons.
ISOs can offer hardware, such as terminals, as well as software, such as point-of-sale transaction systems that can be used to process card payments at a physical location or online. They may also offer mobile readers and apps to help make your payment processing as seamless as possible.
In addition, ISOs often offer other services, such as analytics, customer service, and fraud prevention. These payment partners may also have relationships with online lenders to provide alternative funding options to help finance your business.
For example, Backd partners with ISOs to provide customers with funding options like:
When Does Partnering With an ISO Make Sense?
While ISOs often work with all types of companies, an ISO partnership might make more sense for some. If your business handles many transactions on a regular basis, working with an ISO might help ensure a smooth payment transaction with customers.
For example, retail companies with brick-and-mortar shops that accept credit or debit card payments can access terminals through ISO partners. Online businesses, such as e-commerce sites or any type of company that accepts online payments, can also benefit from an ISO partnership. If you offer a subscription service, you can use ISO systems to set up recurring billing and secure customer data.
ISOs are also well-equipped to work with small businesses. An ISO partner is often able to provide personalized service and more customized options that can adapt as your business grows.
In addition, companies that might have difficulty getting approved for a merchant account might find working with an ISO much easier than going through a traditional bank.
Benefits of Working With an ISO Partner
Let’s look closer at some of the advantages of working with an ISO partner:
Offering more payment solutions: Whether you already accept credit card payments or are currently a cash-only business, perhaps you want to give your customers more payment options. An ISO can help you set up payment processing services like mobile payments, online invoicing, or B2B buy now pay later.
Scaling up your business: When it’s time for your business to grow, your ISO can help. Whether you want to expand into e-commerce, accept payments from international markets, or respond to an increase in transaction volumes, your ISO will know what you need to make the shift.
Leaning on an ISO’s expertise: You are a total pro when it comes to the products and services you offer in your business, but you shouldn’t have to be a pro about payment technology and processes. With an ISO partner, you have direct access to expert advice and hands-on experience. They can suggest the right POS system for your business, help you set up your hardware and software, and answer any questions that may arise.
Upgrading your internal systems: Are you tracking sales, cash flow, revenue, or inventory by hand? Are you manually updating spreadsheets each month or quarter? An ISO can make sure your system is streamlined and connected to the right software so that you can begin to automate more of your financial backend. Not only can this save you time, it can also ensure higher levels of accuracy.
Boosting your cash flow: There are few ways working with an ISO partner might help your cash flow. For one, some ISO’s are able to offer more competitive rates than you’d be able to secure on your own, saving you in expenses. Also, your ISO can help you expand into online or international markets or provide your customers with more tech-forward payment solutions, all of which can be paths to more revenue. Finally, if your ISO works with a lender, you may be able to access cash during temporary downturns.
Mitigating risk: With online or card payments comes more fraud and security risks. An ISO can make sure your payment processing solutions are PCI-DSS compliant so you and your customers can transact business safely.
Tips for Finding the Right ISO Partner
The right ISO partner can help you and your business focus less on technical issues like getting paid and more on providing services and goods to your customers.
Check if the payments platform has an integrated payment gateway and can process a lot of transactions. The last thing you want is to be able to accept payments when you release new products or have a sale. Also, ask about their fraud detection and prevention to make sure that your funds are secure.
You should also inquire about the pricing plan and make sure that it fits with your business finances. Make sure to read the fine print for any fees and read over the contract carefully. And consider if they have partnerships with other companies or online lenders who can provide financing options if you need them.
And finally, do your due diligence and make sure the ISO partner is reputable. Learn as much as you can about the company. Check online reviews or talk to other businesses to get a third opinion.
Build Your Business With an ISO Partner
Partnering with an ISO can help you streamline your payment process, incorporate payment software into your accounting, and improve your customer service. It can also be easier and more cost-effective than working with a traditional bank to get a merchant account. Plus, many ISOs partner with online lenders to provide business funding for small businesses and companies that might otherwise struggle to get financing.
Are you an ISO looking to expand your services to small businesses? ISO partners can get multiple financing options with Backd to help their clients grow their businesses. Backd also partners with ISO providers to provide advisory services for ISO integration. Become a partner today.
