What is an Independent Sales Organization (ISO)?

An Independent Sales Organization (ISO) is defined as a registered entity that performs functions for acquirers or issuers in the payment processing ecosystem. This includes activities such as soliciting merchants to accept card payments, providing customer service to merchants, and managing merchant accounts. ISOs act as intermediaries between merchants and the payment processors, allowing for a broader range of businesses to effectively utilize credit and debit card payment systems without the need to directly establish a relationship with a bank.

This role is critical because it helps streamline the process of accepting electronic payments and expands access for merchants, particularly small and medium-sized businesses, which may not have the resources to work directly with banks. By functioning in this capacity, ISOs contribute significantly to the efficiency and accessibility of payment processing services in the marketplace.