Independent Sales Organization: What Businesses Need to Know

An internet merchant account may not be the first thing on the mind of the owner of a new small business, but, if not, then it probably will be on their mind pretty soon. Merchant accounts allow small and large businesses to accept credit cards and debit cards, as well as other forms of eCommerce from their customers, such as eChecks. Small business owners may not have even heard of an “independent sales organization,” but these are often crucial to establishing payment infrastructure in a small business.

What is an independent sales organization and what are they used for? Financial experts agree that customers will continue to expect the online payment options that made their lives possible during the COVID-19 lockdowns. Understanding and utilizing independent sales organizations will be more important than ever.

What is an independent sales organization?

Sometimes abbreviated as “ISO,” an independent sales organization offers credit card processing services, just like a bank or other financial firm does. However, they are independent, as the name suggests, and not employed directly by any bank. These third-party companies can be utilized directly to process payments for a business with an online component or face-to-face with a credit card swipe machine.

Independent sales organizations have relationships with payment processors that allow them to route credit card information through the proper channels. These organizations work with merchants to enable them to accept their customers’ credit cards, as well as process any fees incurred from the transaction.

ISO vs payment processor

An independent sales organization, like other kinds of internet merchant account provider, uses a third-party payment processor to do the grunt work of the transaction. By this, we mean: processing the card information and transferring funds between accounts.

ISOs and merchant account services are not banks – they are simply services that facilitate money between banks. independent sales organizations help merchants set up their website infrastructure, as well as any hardware or software needed to complete their customers’ transactions.

Payment processors are typically separate companies. Their job is to process the information and complete the transactions. A merchant’s relationship with them may be limited only to tech support—they provide services to help their merchants ensure that their payments are getting through.

The Takeaway

An independent sales organization, like other kinds of internet merchant account providers, offers services to businesses enabling them to process credit card information on their websites or in their stores. They generally use a third-party payment processor to conduct the actual transactions.

Selecting and utilizing the right service is an essential business practice. Visit or call (888) 924-2743 to find internet merchant account products and services including hardware, website infrastructure, and connections to reliable payment processors.

Leave a Comment