Why ISOs should go exclusive with one payments partner
Five reasons ISOs must consider going solo with a single full-service payments provider
To maximize sales and diversify revenue streams in an ever-changing landscape, independent sales organizations (ISOs) often partner with multiple payment processors for a number of reasons. But while multiple relationships might make sense on paper, partnering with a single, full-service payment processor may actually prove more valuable in practice.
Here are five compelling reasons for ISOs to consider going exclusive with a full-service payments partner.
1. A simpler, more effective sales process
With several different relationships in play, an ISO’s sales representatives may find themselves spread too thin. And this could hamper the effectiveness of their sales processes.
Each payment processor has different products, eligibility requirements, tools and on-boarding procedures in place. The ISO’s sales representatives will not only have to learn all these variations and keep them front of mind when speaking to merchants; they’ll also have to keep abreast of any changes as they arise. With payment processors continually adapting to keep up with a dynamic market, having multiple programs to offer requires more resources, more training and more time-intensive administrative tasks.
And that’s leaving aside the question of how they’ll decide which processor to use on any given merchant approval.
By contrast, a single relationship streamlines the process. There’ll be less time spent on administrative tasks and acquiring product knowledge. This means ISOs can focus on optimizing their sales funnel and boosting revenue.
2. Exclusivity as leverage
By partnering with a single provider instead of splitting the value of their business across multiple competitors, ISOs increase the financial worth of their customer to the provider, and can therefore leverage that exclusivity to get better benefits, rates and revenue shares.
Put simply, the more business an ISO brings to a single provider, the more valuable the ISO will be to that provider. And this serves as an incentive to offer more generous benefits.
ISOs that give up the ability to partner with others strengthen their position as a valuable partner to the payment processor they do deal with.
3. Increased acceptance rates
The right payment processing partner should have relationships with a broad range of sponsor banks, giving ISOs more opportunities to sign or acquire merchants of all shapes, sizes and risk levels. As a result, ISOs will be better placed to accommodate these different business types from one single provider, which means improved approval rates, even if they’d typically be perceived as higher risk.
Over the past 20 years, Paysafe has developed relationships with three sponsorship banks for traditional businesses, as well as relationships tailored specifically for higher risk and highly specialized businesses. This allows us to cater to merchants in industries ranging from traditional bricks-and-mortar retail and eCommerce to more specialized industries such as subscription, direct selling, petroleum and iGaming.
In addition, the strength of Paysafe’s partnerships allows us to offer better funding options. Case in point, where some payment processors may have a 6pm cut-off for next day delivery of funds, Paysafe can receive payment files late into the night.
4. Specialized expertise and support
Do you service customers that work in niche verticals such as direct selling, property management or membership sites? With experience in a broad range of industries, a full-service payments provider can offer specialized products and tools, expertise and tailored advice.
At Paysafe, for instance, we’re proud to offer live training on demand, assistance with agent teams and advice on future-proofing payments infrastructure as cost-effectively as possible. With this level of support, ISOs can offer their customers more value and feel empowered to approach merchants they wouldn’t be able to service otherwise.
5. Better delivery and more satisfied customers
With over 35% of merchants now asking for omnichannel payment solutions and 28% striving to be early adopters of new payment technologies, partnering with a full-service payments provider can help ISOs deliver more value efficiently.
To begin with, a full-service provider will have a larger product suite and specialized tools. And this means ISOs can deliver on all a merchant’s requirements — whether these are for fixed points-of-sale or a comprehensive e-commerce solution — without having to make separate arrangements with different processors.
More importantly, a full-service provider is more likely to have access to industry-leading products and the know-how to implement them cost-effectively. The right payment provider can help ISOs explore new technologies and products, provide the guidance they need to offer a better service and, ultimately help them unlock exciting new opportunities.