If you have a US business that sells direct to consumers, you may be faced with the decision of payment processor vs ISO.
If that’s you, you’re in the right place. In this article, we’re going to share the differences along with a few important considerations to help you choose the right payment solution for your business.
Of course, regardless of the payment solution you choose, you can also use our free resources to open a US business bank account for your local and non-resident entities.
Feel free to use the table of contents to jump ahead to any sections that are immediately relevant to your search.
Table of Contents
- Difference Between an ISO and a Payment Processor
- Frequently Asked Questions
- Ready to Explore Your Options?
Difference Between an ISO and a Payment Processor
When trying to understand the difference between a payment processor vs ISO, it can be quite confusing. One of the main reasons for this confusion is that many (though not all) ISOs often present themselves as payment processors, which isn’t entirely inaccurate.
You see, ISOs or Independent Sales Organizations essentially repackage and resell the services offered by payment processors. So, the end user is getting the same service, it is just being repackaged and resold to them by a different company.
With this in mind, it is not uncommon for ISOs to include additional services, more tailored solutions for specific industries or niches, and to even package solutions offered by different payment processors.
In doing so, ISOs often provide a much more user-friendly experience and direct integration with other software solutions that their end users would expect.
Should You Open Directly With Payment Processors
Most payment processors require customers to be processing significant volume in order to open accounts with them directly. With this in mind, it is possible to open accounts with payment processors if your business meets their requirements.
That said, most ISOs offer sufficient service, require lower volume, and often provide much better support for their customers. With this in mind, before deciding whether you want to open directly with payment processors you should also consider whether an ISO could meet your needs better.
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Frequently Asked Questions
Below are three of the most common questions that we receive from people interested in payment processing and ISOs. If you have further questions you would like answered, don’t hesitate to get in touch with us directly.
Is an ISO a Payment Processor?
An ISO is not a payment processor. However, ISOs do repackage the services offered by payment processors, so it can be easy to confuse the two options when looking at them side-by-side.
What Does ISO Stand For In Payment Processing vs ISO?
ISO stands for Independent Sales Organization in the payment processing ecosystem. In other words, they repackage and sell the service of payment processors directly to end users.
How Do I Know Which Processor Is Best for My Business?
To know which payment processor or ISO is best for your business, you should assess your specific requirements and which accounts you can realistically open. Then you should consider other variables such as fees, ease of use, customer support, and more.
Ready to Explore Your Options?
If you would like assistance navigating your banking options in the USA, we can help.
You can access GlobalBanks USA, our dedicated US account opening service, in just a few clicks.
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Of course, if you have any questions, please contact us directly.