Independent Sales Organizations (ISOs) are third-party companies that credit card member banks use to establish relationships with new merchants. In addition, ISOs are also used by independent small businesses to process online credit card transactions.
As ISO attorneys, Sigal Law Group understands all the challenges you can face when trying to process electronic payments. Whether you have a dispute with a vendor, processor, bank, or another owner, or if you feel you are being wrongfully charged because of mislabeled fees, downgraded surcharges, and discount services, our expert attorneys can help. Contact us today for a free consultation.
What are ISOs?
To understand the role of an ISO, you'll want to think of it as a middleman between the business owner, the bank that issues the credit card, and the acquiring banks. The role of an ISO is to establish relationships with business owners on behalf of the banks. This includes giving the business the equipment they need to accept their customers' payments. In return, the ISO gets a flat fee or a percentage of sales.
While the benefits of using an ISO are that the fees are much lower than other payment processors and have better customer service, the laws surrounding them are exceptionally hard to understand. This makes it easy for business owners to become non-compliant.
Why You Need an ISO Lawyer
When a business is accused of violating ISO regulations, it can detrimentally affect the business's brand, customer loyalty, and ability to make money. Furthermore, it could land the business on the Member Alert to Control High-Risk Merchants (MATCH) or Terminated Merchant File (TMF) list. If this were to happen, it would make it impossible for the business to get a merchant account at most banks.
To prevent independent small businesses from having to deal with such issues, the ISO lawyers at Sigal Law Group will walk you through the issues at hand and develop a strategic defense that matches your unique legal needs. Contact our office today for a free consultation.
