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Education

of its acquiring bank or another acquiring bank and payment networks to deliver merchant transaction data to
registered entity. the payment networks. Processors are large and important participants in the
acquiring business.
Sub-ISO/agent/ISA/MLS
These entities or individuals are Hopefully, these rough definitions demystify some of the players in the
typically independent contractors industry.
who solicit merchants on behalf of In publishing The Green Sheet, neither the author nor the publisher is engaged in rendering legal,
an ISO or acquiring bank, but unlike accounting or other professional services. If legal advice or other expert assistance is required,
some ISOs, are not usually registered. the services of a competent professional should be sought. For further information on this article,
It can be hard to pinpoint the please contact Adam Atlas, Attorney at Law by email at atlas@adamatlas.com or by phone at
differences between an ISO, agent, 514-842-0886.
merchant level salesperson (MLS) or
independent sales agent (ISA), but
the best way to distinguish between
an ISO and the others relates to the
degree of responsibility assumed
by the entity, such as minimum
revenue, liability for merchant losses
and registration – each of which
could make the entity either more of
an ISO or more of an agent/MLS/ISA.
Referral agent

A referral agent is like a sub-ISO
or agent, with one key difference:
referral agents do not negotiate
pricing with merchants. Common
referral agents are chambers of
commerce, community banks and
businesses in a position to send
merchants to ISOs, as warm leads, but
not in a position to negotiate pricing
or collect merchant applications.
Gateway

A gateway undertakes for a merchant
or an ISO (for the benefit of merchants)
to create a secure connection between
the merchant's POS and an acquiring
bank or network. The purpose of the
connection is to convey transaction
data. Gateways are data pipelines,
and they are not usually engaged in
any financial element of the payment
transaction.
Super-ISO
In short, a super-ISO is a big ISO.
Some super-ISOs have purchased
other ISOs, and combined, each
constitutes an extremely large
business that is responsible for many
thousands of merchants.
Processor
A processor is a sophisticated
gateway that is authorized by an

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