What is an ISO agreement?

These are agreements between sellers (or the ISOs customers) and the ISO to process transactions on their behalf and collect a fee

How much can an ISO for merchant services earn?

This depends on the volume of business and total revenue transacted. If na ISO is processing more in transaction volume (or total dollars) annually they can expect to keep a percentage of this

Do ISOs need to be licensed?

You will need to have a sponsored or partner bank that you utilize. This partner bank will vet you as an owner and the legitimacy of the ISO

Is an independent service provider the same as a merchant service provider?

No, and ISO processes payments through a sponsored bank of their own, where as a merchant service provider will provide merchant accounts to businesses who qualify

About the Author

Kal Salem

Kal Salem

MA Accounting - Arizona State University

A CPA and finance professional working with small businesses to educate owners and grow alongside their businesses. Kal started his career in public accounting supporting SEC, regulatory, and both internal and external audits. He holds a Masters in Accounting and a BS in Supply Chain Management. Owner at Salem CPA...

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