Sub-ISO Definition

Merchant Account Sub-ISO Explained:

What is a Sub-ISO? The term “sub-ISO” is somewhat of a loose term in credit card processing that can be used to refer to merchant account providers that are subsidiaries, affiliates, partners and/or resellers of an actual Independent Sales Organization (ISO). Sub-ISOs are generally sales organizations that resell the services of either larger ISOs or direct processors. Often times, sub-ISOs will not identify themselves as such and will simply call themselves ISOs.

Obtaining a merchant account through a sub-ISO does not necessarily raise the cost of a merchant account over obtaining one from a larger ISO or direct processor. Although, in some cases, sub-ISOs can adjust contract terms, pricing, and fees at their own discretion, which may result in higher or lower fees for the merchant.

One advantage that many sub-ISOs have over larger organizations is being able to supply better customer service since they have fewer accounts to manage and, therefore, fewer problems to resolve. Other sub-ISOs may outsource their customer service to a larger parent company or direct processor, which often results in reduced customer satisfaction. Generally speaking, small businesses (less than $5 million in annual processing) are better served by small sub-ISOs and larger businesses by large ISOs and direct processors.

Before signing with any provider, be sure to read the merchant account agreement thoroughly to understand if you are signing directly with the company with which you are dealing or if it is acting as a sub-ISO of another company. If you are working with a sub-ISO, ask which company will be handling the customer service of your account and be sure to research all companies involved.

Also see: Reseller

Tell Us How They Treated You

Sharing your experience influences our rating and helps other business owners make informed decisions. Please take a moment to tell us if they are serving you well. Your email address will never be published, shared or sold. We only use it to authenticate that you are a real person and, if you select the option for it, to let you know if someone replies to your comment. Required fields are marked *

Comments must contain details about your experience. Please do not use ALL CAPS. Self-promotion, marketing content, or contact information of any kind will not be published. By submitting a comment, you are agreeing to our Comment Policy

Copyright

Copyright © CardPaymentOptions.com, Inc. (Digital Fingerprint: 0d38c6720f0d78a701b74d58653af608). Getting paid to re-write this page? Click here to earn a reward.

Any unauthorized copying and reproduction of the content of this page, including all meta data and computer code, is strictly prohibited. While the information in the above article is believed to be accurate as of its publish date, the author and publisher make no representation or warranties with respect to the accuracy, applicability, fitness, or completeness of the contents. The author and publisher shall in no event be held liable to any party for any direct, indirect, punitive, special, incidental or other consequential damages arising directly or indirectly from any use of this material, which is provided “as is,” and without warranties. Any and all use of trade names and/or marks are for identification purposes only and shall not be construed as a claim of affiliation, or otherwise, with CardPaymentOptions.com, Inc. ("CPO") in any form. The sole purpose of the material presented herein is to alert, educate, and inform readers. It is not intended as legal or financial advice. We may earn revenue if you obtain services from a provider that we recommend. See this page to learn how we support our operations.

Our Top Pick of 2022
helcim logo
star star star star star
Helcim Payments
done
No Monthly or Annual Fees
done
Super Low Processing Rates
done
POS, Mobile, and Online Payments
Sales & Support: (888) 506-7812
Thinking of working in merchant services? Download our free ebook first.
An Honest Buck ebook cover
Most Ethical Processor of 2024

The most ethical providers offer rock-bottom rates, no monthly fees, no contract, and superb customer support. Below we break them down by specialty and industry:

▶ Retail
▶ Restaurant
▶ Card-Not-Present
▶ Invoicing
▶ Online Checkout
▶ E-Commerce Store Creation
▶ Subscriptions & Recurring
▶ Web Developer Tools
▶ Mobile
▶ Non-Profit
▶ Canadian
▶ Seasonal
▶ Quickbooks Intergration
▶ Free (Zero-Fee) Processing