Payment Processing Technologies LLC has launched ISO Registration In A Box. The Warsaw, Ind.-based independent sales organization, also known as PayProTec, says it designed the service to make it easier for independent sales offices to grow their businesses.
Announced Dec. 6, the service helps smaller sales offices to expand by providing them with support, says a PayProTec spokesperson. The goal is to help the sales office become a registered ISO and retain their brand.
“The main advantage of our program is that we eliminate a big portion of the time, capital and infrastructure development that often hinders smaller ISOs from pursuing registration,” Matt Hoskins, PayProTec CEO, tells ISO&Agent Weekly. “We provide the tools that they historically have little or no experience with, such as risk management, product development, technical/customer support, deployment and underwriting. We are positioning ourselves as their technology partner.”
In most cases, PayProTec underwrites all or a portion of the registration fees, Hoskins says. Visa Inc., for example, requires a $5,000 fee for initial registration as an ISO and $2,500 annually thereafter, according to a Visa bulletin on agent registration.
With ISO Registration In A Box, a sales office must generate 25 new merchant accounts per month to begin the planning process. A trial period that lasts up to 90 days follows to enable PayProTec and the would-be registrant to become familiar with each other, Hoskins notes. Each registrant also must meet Visa and MasterCard Worldwide ISO requirements.
Competing programs sometimes have a 100-account monthly requirement, and in some cases the minimum is 300 per month, Hoskins says.
Costs for the program vary. “Each situation is a little different, depending on the agent office,” Hoskins says. Each program is customized for the sales office, often based on whether there is additional sub-agent residual revenue and the types of merchants in the portfolio, he says.
Participants also can use customized merchant statements to reinforce their brand, Hoskins says.
“All the merchant statements will have their name on them; customer support will be transparent to the merchant,” Hoskins says.
If marketed properly, the type of service PayProTec is offering could be a boon for small sales offices contemplating their growth plans, says Adil Moussa, an analyst at Boston-based Aite Group LLC.
Many ISOs have developed these types of programs, but their marketing efforts were poor, Moussa says. “I see some struggling because they don’t do a good job of letting the world know they offer these services,” he says.
Those ISOs most likely to be interested do not want a lot upfront capital expense, Moussa says.
ISOs traditionally could pay $1 million in the first year to form and become operational, Moussa estimates. Additional expenses include software and ensuring enough point-of-sale terminals other product inventory are available, he says.
“It can be very daunting,” he says. “This will make it a lot easier.”
What do you think about this? Send us your feedback. Click Here.