ISOs have evolved…have you?
UNDER BLOG read
Tuesday July 19, 2022

ISOs have evolved…have you?

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Andy Roth

  • Over the last ten years, traditional card-acquiring Independent Sales Organizations (ISOs) have slowly evolved while PayFacs and Aggregators have emerged strong
  • The Fintech landscape is changing so rapidly that ISOs and sales agents should be concerned
  • Merchants are now obtaining their payment accounts as a byproduct of this software
  • Under provides digital applications, integrations, PDF Mapping, and esignatures to allow ISOs and agents to compete

In the last decade, independent sales organizations (ISOs) have led the industry with new merchant acquisition. This is because merchants were able to get personalized service, lower pricing, and a myriad of options as opposed to working directly with processors. Besides handling all necessary credit card processing services, ISOs provided personalized support and direct relationships with their merchants.

The Financial Landscape is Changing Rapidly


Within the last 5-7 years all of this has changed!  A new breed of online financial service providers like Stripe, Braintree, & Ayden emerged. They offer merchants an array of account services that can be conducted from start to finish online.  They also power the onslaught of vertically integrated software providers that are coming to the market. 

The global pandemic accelerated this change as consumers shifted from in-person banking to online financial services. What started as a great way to save time became an absolute necessity as businesses were forced to shut their doors and find alternatives for face-to-face transactions.

Why Does Any of This Matter to Me?

Over the last ten years, traditional card-acquiring Independent Sales Organizations (ISOs) have slowly evolved. While the majority have transitioned away from door knocking, they have yet to embrace the real shift in the market. It has been the software companies that have identified the unfulfilled needs of merchants with vertically integrated software. These merchants are now obtaining their payment accounts as a byproduct of this software.

Because of this change, ISOs with foresight are attempting to support Independent Software Vendors (ISVs), Value-added Resellers (VARs); & Vertically Integrated Software Platforms; however, they lack the tools required to compete with Stripe, Adyen, PayPal, and the flurry of new Payment Facilitators (PayFacs).

By pursuing a foothold in the software market, ISOs may gain access to a new level of merchant accounts. Merchants that see the value of software are often more well established, demonstrate greater stability, and process higher payments. In addition, with longer-term merchant relationships and the right technology, ISOs can grow their product offerings to include additional services like payroll processing and invoicing.

The Fintech landscape is changing so rapidly that ISOs and sales agents should be concerned.

As more traditional sales models become outdated, those organizations that can’t or won’t evolve will eventually disappear.

How can ISOs and Agents Adapt?

There are few, simple, things that help ISOs and Agent stay relevant, and thrive in this environment.

  • Give your merchants opportunities to open accounts digitally
  • Improve your technology to support ISVs, Vertically Integrated Software, Associations, and VARs.
  • Focus and become an expert in one or more verticals.  Shy away from the jack of all trades approach of the past.

Under Empowers ISOs and Agents to Stay Ahead of the Competition

Under has developed a software platform that enables ISOs, Agents, PayFacs and Financial Services companies to provide digital account opening solutions to their customers. In our no-code platform, you can have your own digital with world-class identity and banking verification to filter out the wrong customers. Our platform automatically integrates this data to processor of your choice. In just a few clicks you can sell online, and empower your partners, agents, & ISVs to do the same.

Here’s a quick look at some of the services we provide for our clients:

  • Online Application

Under provides a desktop & mobile friendly online application that can act as a pre-application or full application.

  • Automate Identity and Banking Verification

Turn on identity verification to focus on the right customers and eliminate potential fraud. Under helps you minimize supporting documentation and speed up approvals by turning on bank verification and automating transactional history. 

  • eSignature & .PDF Mapping

Collect signatures from your merchants immediately or after review.  Automatically, populate your Merchant Processing Agreements, W9s, Purchase Orders, and more.

  • Integrate Data Seamlessly

Automatically transmit applications to your Processor & CRM. Offer this to your agents and ISVs. 

Times have changed, and businesses need to evolve to meet the needs of their customers. We believe in the ISOs and Agents that have led the payment processing industry for the last 20 years, and we are excited to empower them to compete and thrive in this digital environment.

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