A brief guide to Payments Broker, ISO, and Payment Processor
Running an online business may involve several hectic tasks that are quite confusing at times. Any online business primarily focuses on sales, from which the business gets the revenue. One of the most important aspects of sales spectrum is the processing of transactions or payments. With the innovation of tech and financial industries, there are several options for processing the payments of your online business. Each method brings something unique to the table, from which you need to pick the right payment model that suits your business the best. In order to do that, you must first gain the appropriate information to eventually make the right decision.
Payments Broker and ISO (Independent Sales Organization) or MSP (Merchant Service Provider) usually work in a similar way with a slight difference. The usual difference between these two models is simply the type of deal they have agreed upon, with the processor, the cost, and the risk levels. ISO or MSPs must be registered with MasterCard and Visa which usually costs about five thousand dollars a year.
Payment processors act as a middleman between the merchant and the acquiring banks. Most of the times, these acquiring banks don’t provide their services directly to the merchant accounts, unless they are huge accounts. If you’re trying to strike a good deal with the payment processors, it’s better to go through an agent or reseller, since they work such deals in bulk, which is why they can get you a better deal. These agents make profits by bringing merchants to these processors, which makes it a win-win situation for both you and the agents.
Unluckily, most of the online merchants aren’t aware of this information, which makes them think that going straight to the processor or bank can get them a good deal. If you’re still confused about which way is better for you, try to speak with an agent as ask your questions and doubts.