STEPS INVOLVED IN BECOMING A REGISTERED MERCHANT ACCOUNT ISO

Generally there are two types of Independent Service operator in credit card processing industry namely unregistered and registered. The unregistered ISO is a sales agent while registered ISO is the independent company. The unregistered ISO’s doesn’t have the provision of having sub agents working under them, while the registered ISO’s can have sub agents till they operate under the name of Independent Service operators.

In order to become a registered ISO, the business or an individual must be registered themselves with MasterCard and Visa credit card companies. Then they should select a large ISO or sponsoring processor in order to resell, though the process is very expensive and time consuming. This might not serve the process especially for the sales agents. Once when agent are registered with company they can have the services of sub agents and generally provide services of credit card processing at lower rates when compared to sales agent. The main advantage of registering as an ISO is control over prices, better buying rates in order to resell the credit card processing services, residual payment options and provision of having outside agents which represents the company.

The first step involved in becoming a registered ISO is to locate a company (ISO or Processor) where he can resell the business product or service. There are several hundreds of company which help in providing the above mentioned services depending upon the business needs of an agent. Then the agent can resell it for wide range of companies that are available in market. The agent who has been in business for long time will be able to know the industry, better processing companies, better supporting companies and provisions involved in registering with specific companies.

In addition it is very important to sell the business product or service  for that company which has a positive image, better history of paying for their ISO’s. But there may be some processors which wouldn’t allow businesses belonging to card not present and e-commerce. There are other processors characterised with poor rates of reselling and charge high fees. So it is best advised for any individual to spend quality time in researching better companies for reselling.

After choosing an ISO or processor, the agent must start is registration process which would take nearly six months. So majority of agents opt for the services of experienced attorney, who will help in forming an ISO. The application process is lengthy, expensive and thorough with MasterCard and Visa card companies. While personal and business history of owner will be scrutinized thoroughly along with Profit and loss reports. The owner’s and businesses credit and personal assets will be taken into account of application process.

The initial signup or registration fee for single processor or ISO will cost about 10,000 dollar for first year and 5,000 dollars for subsequent years. Suppose if the company is registered with more than one, then same amount will be charged for each registrations. Afterwards an agent will have to get his organization registered as an ISO with MasterCard and Visa companies. Once when merchant qualifies as registered merchant account ISO he should not transfer existing customer directly into new processor which results in loosing residuals from all the existing account and he can be sued or fined.