How to get into the credit card processing business?

Getting into the credit card processing business requires some strategic steps. First, you must thoroughly research the industry landscape and understand the regulations and requirements. Then, you'll want to establish strong relationships with banks or payment processors to obtain ISO/MSP merchant accounts. Investing in reliable payment processing technology and developing a solid marketing strategy to attract clients is crucial. Lastly, never underestimate the importance of exceptional customer service – it sets you apart and builds trust in this competitive field.

What's the difference between an ISO and an MSP?

The terms ISO and MSP are used interchangeably. The confusion stems from Visa and Mastercard using different terms, ISOs and MSPs, but both terms respectively denote organizations providing merchant services.

Blog > How to Become a Merchant Service Provider (and ISO)? 6 Easy Steps

How to Become a Merchant Service Provider (and ISO)? 6 Easy Steps

By Nathan Kurszewski|Last Updated: January 10th, 2025|

The payment processing industry offers many opportunities for businesses to handle electronic payments and expand their customer base.

Whether you aim to be an Independent Sales Organization (ISO) or offer your own merchant services, this article provides six steps to help your business become an ISO for merchant services.

What is a merchant service provider/ISO?

Merchant service providers, or ISOs, are pivotal in facilitating electronic payment processing for businesses. ISOs act as intermediaries between merchants and financial institutions to enable seamless and secure transactions by allowing merchants to accept various types of electronic payments from customers — credit and debit cards, digital wallets, online payments, etc.

By providing the necessary infrastructure, technology, and expertise, merchant service providers empower businesses to offer convenient payment options to their customers while adhering to industry standards and compliance regulations.

ISOs help businesses enhance their revenue streams, improve customer satisfaction, and navigate the complexities of electronic payment processing by offering advanced payment technologies and integrations.

For example, consider a retail business that wants to implement an efficient omnichannel payment experience for customers. ISOs provide the necessary expertise and solutions to integrate the business’s point-of-sale (POS) systems with online platforms and mobile payment options. The business can then offer a consistent and convenient payment experience across various channels for customers to purchase in-store, online, or via mobile devices. This integration enhances revenue streams by capturing sales from different channels and improves customer satisfaction by providing flexibility and convenience in the payment process.

While it’s evident that merchant service providers play an important role in payment processing, becoming an ISO for the merchant services industry requires some well-thought-out effort.