An Independent Sales Organization, which is additionally sometimes referred to as a Member Service Provider, is an outsider organization that represents a bank or other entity by selling and advancing their services, including merchant services.

Independent Sales Organization explained

An Independent Sales Organization is an outsider organization that partners with an acquiring bank to discover, open and manage merchant accounts on behalf of such business. The ISO sets up an agreement with an acquiring bank, outsider processor or other licensed entity, to go about as a representative of any of the above entities. Their role is to administer the merchant services of the bank or processor.

The role of an ISO is to coordinate the merchant services offered by the bank. An Independent Sales Organization is likewise able to underwrite if required, and should accept any hazard or risk associated with their own particular merchant account services, which can be higher in the event that they are operating as a larger Independent Sales Organization. Often, larger ISOs will resell their processing services to smaller ISOs, by charging a rate for the services.

An ISO is generally sponsored by a processing bank and should be members of the Visa or MasterCard relationship in order to be registered by either of these affiliations.

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