In practice
An ISO markets merchant accounts, helps with onboarding and often provides support, while the acquirer holds the network relationship. ISOs are registered with card networks through their sponsoring bank. Many high-risk providers operate as ISOs working with several acquirers.
Common confusion
An ISO usually does not make the final underwriting decision; the sponsoring acquirer does.
Frequently asked questions
What does ISO stand for in payments?
Independent Sales Organization.
Is an ISO the same as a payment facilitator?
No. An ISO sells individual merchant accounts held with an acquirer; a payment facilitator onboards sponsored merchants under its own master account.