Page 16 - GS221102

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ISO, however, does not have a good resale value. Though control. Most importantly, they should have a solution set
there may be some tax advantages to selling a retail ISO, and knowledge base that allows them to integrate around
for the most part, it makes more sense to keep it and earn proprietary solutions. This is critical and is the single
the residuals over the portfolio's lifetime. greatest thing a retail ISO can do to ensure long term
success.
Moreover, while wholesale ISOs have a greater valuation,
I have seen many fail. There is no guarantee of success. A retail ISO is to a wholesale
Before embarking on such an endeavor a business should ISO as love is to marriage
fully assess its strengths, weaknesses, opportunities and
threats. Again, a sales channel is a necessary but insufficient
component for a wholesale ISO. Entities considering the
Specific to strengths or weaknesses, an entity contemplating transition should recognize the pros and cons of each
becoming a wholesale ISO should fully assess its assets and fully assess their assets. Exploration should involve
including cash position, technology, skill set, knowledge developing a business plan and budget toward the end
and industry connections. Regardless, unless it also has state before action is taken to visualize both the expense
management depth, it will be sacrificing directives. and the steps to get there. Only after fully understanding
this path can a business deliberate and arrive at the
Become the best version of me ultimate, optimal conclusion.
Retail ISOs can take many steps to present the image of
a wholesale ISO without assuming the liabilities. With As founder of Humboldt Merchant Services, co-founder of Eureka
regard to adjudicating merchant files, they could have Payments, and a former executive for such payments innovators as
multiple acquirer relationships to be able to provision a WePay, a division of JPMorgan Chase, Ken Musante has experience in
merchant to the wholesale ISO most likely to support that all aspects of successful ISO building. He currently provides consulting
specific merchant. services and expert witness testimony as founder of Napa Payments
and Consulting, www.napapaymentsandconsulting.com. Contact him
They should have their own service team to assist and at kenm@napapaymentsandconsulting.com, 707-601-7656 or www.
improve the service offered through their wholesale linkedin.com/in/ken-musante-us/.
ISO. When possible, they should brand the services they