What a good ISO does for a restricted merchant
- Knows which acquirers currently accept the category, which changes more often than published material suggests
- Prepares the file before submission, rather than letting it be declined and reworked
- Sets expectations on reserve, caps and pricing up front
- Has more than one banking relationship, so a single acquirer exiting the category is not the end of your processing
How to evaluate one
Ask how many acquiring relationships they hold and whether any currently underwrite your exact category. Ask what happens to your account if that bank exits. An ISO with one relationship and a confident manner is a single point of failure wearing a suit.
On referral fees
ISOs and referral partners are compensated, usually as a share of processing revenue. That is
ordinary and disclosed. What matters is whether the compensation is steering you toward a bank that
fits, or toward the only one they have.