A money transfer operator (MTO) is a company that provides money transfer services that allow individuals and businesses to send and receive money electronically. MTOs typically offer various services, including domestic and international money transfers, foreign exchange, and payment processing.
An independent sales organization (ISO) can act as a sales agent for an MTO, selling the MTO’s money transfer services to merchants and helping them set up accounts to process transactions. One has to be careful how one defines what an agent is. In this case, they are a non-custodial agent (i.e. they are not in the flow of funds, nor are they taking custody of funds).
The ISO is responsible for promoting the MTO’s services to merchants and helping them get set up to use the services but does not actually provide the money transfer services itself. The ISO typically earns a commission on the revenues generated from the merchants it signs up with the MTO.
In most cases, when you opt for a white-label service, you are essentially assuming the role of an ISO, where sales and marketing services are provided by you and the first level of customer support.
This page was last updated on January 4, 2023.