The Case for Quality over Quantity: Choosing the Right Processing Relationships for ISOs

One common misstep for ISOs is trying to manage too many processing relationships. While having diversification is important, spreading thin often leads to lack of leverage in any of the relationships. ISOs need to focus on building strong relationships with their processing partners, as commitment and trust are the foundations for growth. Managing merchants across multiple platforms becomes inefficient and time-consuming, making it difficult to streamline processes and provide excellent customer service. With each relationship having unique platform and product nuances, ISOs spend too much time learning the ins and outs of each processor. Consolidating residual downlines also becomes complicated and costly, as different processors may have varying reporting formats. Additionally, having numerous income streams can significantly reduce the value of an ISO's business, especially when it comes to selling. Therefore, ISOs should aim to narrow down their processing partners to a select few, ensuring efficiency, better customer service, and increased business value.

Episode 3 of the Payments Ground Game podcast, hosted by Kevin and Elaina Smith, titled "The Case for Quality over Quantity: Choosing the Right Processing Relationships for ISOs" was published on October 16, 2023 and runs 19 minutes.

October 16, 2023 ·19m · Payments Ground Game

Summary

One common misstep for ISOs is trying to manage too many processing relationships. While having diversification is important, spreading thin often leads to lack of leverage in any of the relationships. ISOs need to focus on building strong relationships with their processing partners, as commitment and trust are the foundations for growth. Managing merchants across multiple platforms becomes inefficient and time-consuming, making it difficult to streamline processes and provide excellent customer service. With each relationship having unique platform and product nuances, ISOs spend too much time learning the ins and outs of each processor. Consolidating residual downlines also becomes complicated and costly, as different processors may have varying reporting formats. Additionally, having numerous income streams can significantly reduce the value of an ISO's business, especially when it comes to selling. Therefore, ISOs should aim to narrow down their processing partners to a select few, ensuring efficiency, better customer service, and increased business value.

Episode Description