What is meant by equity interests in the context of ISOs/MSPs?

Equity interests in the context of Independent Sales Organizations (ISOs) and Merchant Service Providers (MSPs) refer specifically to the arrangements that allow these entities to share in the revenue generated by the transactions they facilitate. This involves a partnership-like structure where ISOs and MSPs may have rights to a percentage of the sales or transaction fees processed through their services.

This arrangement not only gives them a stake in the success of the merchants they work with but also incentivizes them to promote and support the business, as their earnings are directly linked to the volume of transactions. Such financial partnerships can significantly align the goals of the ISOs/MSPs with those of the merchants, fostering a collaborative relationship.

While full ownership of a business, simple loan agreements, and transaction fee structures might play roles in the broader business context or could be relevant to payment processing, they do not encapsulate the shared financial interest and operational partnership that defines equity interests in the realm of ISOs and MSPs. Thus, the choice that best aligns with the concept of equity interests is indeed the partnership in revenue share and portfolio rights.