Who is Really Behind Your Credit Card Processing?
What You Need to Know to Make More Profitable Decisions
If you're a business owner trying to make sense of your credit card processing fees, you're not alone. One of the most common sources of confusion is understanding who exactly you're working with. You might think you're working directly with a bank or processor, but more often than not, you're working with an agent of an ISO (Independent Sales Organization).
This isn't necessarily a bad thing. In fact, many of the top merchant services companies operate under the ISO model. Understanding how these relationships work and what they mean for your business is the first step toward making smarter, more profitable decisions.
The Basics. What is an ISO, Agent and Acuiring Bank?
An ISO is a company registered with Visa and Mastercard and sponsored by an acquiring bank. They are authorized to sell and support merchant accounts on behalf of processors like TSYS, Fiserv, and others.
An Acquiring Bank provides merchants with the ability to accept payments via credit and debit cards. They provide the key services needed for the entire transaction, like merchant accounts, payment gateways, and other technical steps of collecting and depositing funds to and from the appropriate accounts.
An Agent is an individual or business that sells payment processing services under the ISO's umbrella. They act as an intermediary salesperson to connect merchants with payment processing solutions offered by the ISOs.
Did you know? Most merchants don't work directly with an ISO. Instead, they work with the Agent of the ISO, and they are typically your first point of contact. They may offer equipment, software, and setup support. But they can only sell what their ISO provides. This means that if the ISO of a particular product has limited options, outdated technology, or high fees, that's all the Agent can offer you, regardless of their good intentions.
Real-World, Recently Happend to Us, Example
A new medical office was approached by an agent working under a large ISO, promising "the lowest rate in town." It sounded great to them: fast setup, straightforward pricing, bundled hardware. So the doctor signs the contract and gets started.
Fast forward one year: The practice is growing, but so are its credit card processing fees.
Confused, they reach out to PayStream for a second opinion.
After our detailed audit and rate analysis, we uncovered thousands of dollars per year in hidden fees and bloated markups that were buried in plain sight.
Here's what we found:
A differential markup on interchange. Certain card types (like corporate rewards or unregulated debit cards) had extra fees quietly added.
"Comm Card Adjustments" and other mysterious line items with no explanation.
Multiple monthly add-on fees: padded statement fees, PCI non-compliance charges, and annual renewal fees.
A multi-year auto-renew contract with a steep early termination clause.
The medical office was locked in and overpaying. Not because they chose the wrong processor, but because they trusted an agent who only had one tool in the toolbox.
Independence = Leverage. How PayStream Works.
At PayStream, we don't work for a single ISO. We act as an independent consultant and Agent and are partnered with multiple top-tier ISOs and processors. That independence gives us the flexibility to find the right solution for your business, not just the one-size-fits-all plan someone else is selling.
Here's what sets us apart:
On Your Behalf, we shop multiple ISOs and processors.
We identify unnecessary fees and inflated rates by auditing your current setup.
We custom-build your solution, encompassing hardware, software, integrations, and support.
Our loyalty is to you, the business owner. We're not tied to commissions or quotas.
We stay involved post-sale, acting as your long-term payments advisor.
The result? Lower costs, better service, and a solution that grows with your business.
Why This Matters More Than Ever
As the payments industry continues to evolve, more providers are locking merchants into closed ecosystems, inflexible contracts, or rigid pricing models. If your business is doing over $10K/month, those hidden costs can add up fast.
PayStream's independence isn't just a selling point; it's a strategic advantage for your business. We have visibility across multiple platforms, technologies, and pricing models, so you're never boxed into a bad deal.
It’s Time to Consider Alternatives Like PayStream
Choose Expertise Over Sales Tactics
There are great ISO agents out there, but too often, merchants end up with agents who prioritize closing a deal over building a relationship.
Choose Problem Solvers.
Like PayStream. If you want to know what you're really paying, and whether there's a better way, we offer a free, no-pressure audit of your current merchant services. There's no catch or obligation. You deserve clarity, transparency, and a solution that fits your business. If someone isn’t offering that, are they really on your side?
Ready for a better experience?
Request a Free Statement Audit and find out what PayStream can do for you.
FAQ
Q. What exactly is an "Agent of an ISO"?
A. An agent of an ISO is a person or business that sells merchant services under a larger, registered ISO's umbrella. They aren't directly registered with Visa/Mastercard, but are authorized to onboard merchants through the ISO they're aligned with.
Q. Does PayStream act as an ISO or an Agent?
A. PayStream operates as an independent agent. This means we partner with multiple ISOs and processors to deliver the best-fit solution to each client. We're not locked into one system, and that's what gives our clients leverage.
Q. Can I get better rates going directly to an ISO or processor?
A. Not necessarily. In many cases, direct sales reps work under strict pricing guidelines. Independent consultants like PayStream often have more flexibility to negotiate terms, shop across providers, and build solutions tailored to your business.
Q. What's the risk of staying with my current processor?
A. The obvious risk is that you're overpaying on your processing fees. You could also be missing out on new technology, features, or services that could help you grow. In fact, many merchants don't realize they're locked into outdated or overpriced contracts until it's too late. A simple audit can uncover better paths.
Q. What does a PayStream audit include?
A. Your audit includes a full breakdown of your merchant statement, an analysis of your effective rate, an identification of hidden fees or padded markups, and a comparison to real-time market benchmarks. All with no obligation or pressure, we provide clarity and knowledge so you can make informed choices about your business.