Payment Industry Consultants

Posts tagged ISO

High Stakes for Agents in 2017: Re-evaluating the Agent vs ISO Question

As the acquiring industry continues to rapidly reinvent itself, birthing a variety of new, technology-centric business models to better service the demands of the modern day merchant, many long time merchant level salespersons (“MLS’s”) and agents are faced with the increased pressure of having to decide how best to position their companies for a successful future. The sheer velocity of this “reinvention” of the acquiring industry has forced many agents to re-evaluate the upside of continuing their agent status versus registering directly with MasterCard and VISA and becoming an ISO. As a “successful future” for a business is oft measured by sustainability, growth, and value creation, 2017 will be a determinative year for many agents who will be forced to reconcile themselves to one or the other of these two pathways forward. Read more...

Choosing a Growth Strategy for Your ISO

There are two primary ways to grow your ISO- organically, through your existing sales efforts, and through acquisition.    There is a trade-off between the two strategies: on the one hand you could ratchet up your existing marketing efforts with additional financial investment, and on the other hand you could appropriate additional funds towards an outright ISO or portfolio acquisition.  In contemplating an acquisition, you need to do a significant amount of evaluation, not the least of which is your internal client acquisition costs.  You need to know how much it presently costs your firm to acquire an individual merchant account including all marketing efforts and overhead.  With this information, you can begin to evaluate the trade-offs between expanding your existing sales operation and purchasing an ISO or portfolio. Read more...