Payments have moved to the center of how businesses scale, serve merchants, and stay competitive. As a result, more companies are turning to established payment consultants — registered ISOs with major card brands and sponsored by big banks — to consolidate their payment infrastructure and take greater ownership of their payment strategies.
With demand rising, now is an opportune time to launch or register as an ISO, particularly for those seeking to strengthen merchant relationships and take ownership of their revenue There are a number of potential paths to becoming an ISO, but achieving long-term success requires a clear strategy and the right partner behind you.
Whether you’re a small agency ready to scale or a seasoned professional building something of your own, registering as an ISO unlocks new levels of growth and autonomy.
Key takeaways
- A registered ISO can offer merchant services directly under their brand with processor and card network approvals.
- Becoming an ISO requires a formal business structure, compliance protocols, and a sponsoring relationship with a processor or acquiring bank.
- Working with a trusted partner like Priority can help streamline registration, onboarding, and merchant support.
- ISOs can earn recurring income through transaction-based revenue while building long-term value.
What is a registered ISO?
A registered independent sales organization (ISO) is a business authorized to resell merchant services on behalf of an acquiring bank or payment processor. Unlike agents or sub-ISOs, registered ISOs can leverage branded merchant processing agreements (MPAs) and merchant statements, and are listed with Visa and Mastercard.
Beyond selling merchant accounts, ISOs often act as solution architects for their clients. They are experts at crafting bundled solutions — e.g., payment gateways, point-of-sale systems, fraud tools, and CRM platforms — into customized packages tailored to a merchant’s specific needs. Many also provide localized, hands-on support, helping merchants stay focused on their customers as their businesses grow and evolve.
This flexibility allows ISOs to serve niche industries, differentiate their offerings, and deliver a more personalized experience to merchants.
Registered vs. unregistered ISO
As an agent (or sub-ISO), you operate under a registered ISO’s umbrella — representing their brand, selling their programs, and earning commissions for referred merchants. While this can be a great starting point, your processor relationship is indirect, and you have no contractual tie to card networks or sponsor banks.
Registering as an ISO is a commitment, but it unlocks true independence. A registered ISO gains:
- Direct relationships with sponsor banks or processors
- The ability to brand your business independently
- Responsibility and authority over compliance, risk, and support
- Opportunities to white label certain technologies to make your solutions truly your own
It’s more work up front, but registration lays the foundation to build your own brand, expand your offerings, and own the merchant relationship end-to-end.
Is it worth becoming a registered ISO?
A registered ISO gives payments professionals a direct path to greater control and growth. It offers more leverage in negotiations and opportunities to be more fully involved in the merchant relationship. If you’re committed to growing your book of business, registration is a key step toward long-term sustainability.
However, becoming an ISO requires financial investment and considerable operational effort. From legal work to ongoing compliance, the lift is significant, but the potential business impact makes it worthwhile. Registered ISOs build real enterprise value and create recurring revenue streams through residuals and bundled offerings while providing personalized, local service.
How do I become a registered ISO?
Becoming a registered ISO requires planning and execution across your business infrastructure. Here’s a step-by-step breakdown of what it takes:
1. Develop a business plan
Begin by outlining your goals and market focus. This includes defining the verticals you plan to serve, how you’ll price your services, and what makes your offering different. A solid plan will help guide your next steps and demonstrate credibility when seeking a sponsor.
2. Form a business entity
Establishing a formal business structure, such as an LLC or S-corporation, is essential. It allows you to open accounts, enter contracts, and separate your personal and business liabilities. It also signals legitimacy to sponsor banks and processors, laying the groundwork for future partnerships.
3. Choose a business name and file with your state
Select a name that reflects your brand and resonates with your target market. Once chosen, register it with your state and confirm that it’s available for trademark protection. If you’re planning to scale nationally, protecting your brand early is a smart move.
4. Obtain an employer identification number (EIN)
Apply for an Employer Identification Number (EIN) through the IRS. You’ll need it to pay taxes, hire employees, and open a business bank account.
5. Secure necessary business licenses and insurance
Many states require businesses to hold specific licenses. You’ll also need insurance — particularly general liability and errors & omissions coverage — to protect your business and satisfy sponsor requirements.
6. Establish compliance procedures and internal controls
Sponsor banks and card networks expect a strong internal control framework. That includes written policies for KYC and anti-money laundering, PCI-compliant data security, sales team training, and active risk monitoring. Putting these measures in place signals responsibility to potential sponsors and merchant clients.
7. Secure a sponsorship from an acquiring bank or payment processor
Finding the right sponsor is crucial. This partner will help register your ISO with Visa and Mastercard, and support your operations. Look for a sponsor that is experienced in onboarding new ISOs and aligned with your long-term goals.
8. Undergo due diligence and review the sponsorship agreement
Expect a thorough review. Sponsors typically evaluate your financials, background, and business model. They may also require personal guarantees or merchant volume projections to ensure both parties are a strong fit.
9. Register with the card networks via your sponsor bank
After your sponsor approves you, they’ll submit your application to Visa and Mastercard for registration. This process may take several weeks and includes fees. When completed, your business will be listed as a registered ISO.
10. Launch operations and maintain ongoing compliance
With registration complete, you can focus on scaling operations and strengthening relationships, whether you’re building on early sales momentum or initiating merchant outreach for the first time. Continue maintaining the service and compliance that earn lasting trust. Staying ahead through ongoing training and proactive risk oversight also helps reinforce trust with your sponsor and positions your business for long-term growth.
Case study: PayCompass proves the power of the right ISO partner
PayCompass, a growing payments provider, set out to build its own ISO program to serve merchants better and take control of its revenue. To do it right, they partnered with Priority to streamline onboarding and scale, leveraging a full-stack platform and ISO registration expertise.
With access to tools like MX™ Merchant and a partner that handled the infrastructure and operational lift, PayCompass was free to focus on growing merchant relationships. By May 2024, they had already surpassed their total onboarding volume for 2023, proving that the right partnership can accelerate ISO success.
Partner with Priority
Becoming a registered payments ISO requires planning, compliance, and the right sponsorship. From building a business entity to registering with card networks, each step lays the groundwork for long-term growth.
Priority helps make that path smoother. We support ISOs with fast onboarding, custom commission programs, and access to merchant services built for scale. When you enroll through Priority, you’re boarded with both TSYS and Fiserv under one registration — giving you access to two major processors and reducing annual registration expenses. Our team handles the behind-the-scenes work so you can focus on building relationships and growing your portfolio.
Ready to build your ISO business? Explore Priority’s modern banking and treasury solutions.
