What is an ISO and What Does It Do?

In the arena of a money transfer world, what does it mean to be an ISO? An Independent Sales Organization?


Hello. My name is Faisal Khan and as part of the ‘How to start a money transfer a YouTube series’, the question or rather the topic we will discuss today is what is an ISO model and how does that work.

The ISO stands for an independent sales organization. It is essentially an organization that is responsible for marketing, bringing in the traffic, having the users sign up, and for all this effort, they get some sort of a percentage of the transaction or maybe a one time fee.

It started with the credit card model way back in the 60s and 70s when Bank of America and Wells Fargo and Citi employed hundreds and thousands of, you know, individual salespeople to have people sit out their sale, you know, their credit card application and they would get money from it. In the money transfer industry, if you don’t have a license and you want regulatory coverage, then what role is it that you play?

Let’s say I’m Faisal, I want to start FaisalKhanmoneytransfer.com, and I’m borrowing my, the licenses or the regulatory coverage from another party. Then the role that I play is that of an ISO. I am responsible for marketing, just two things. Marketing, and first level technical support. So first level customer support is, you know, they will be calling me and obviously I will be handling the calls and I will be propagating and marketing my own domain or whatever my own app may be. So an ISO, an independent sales organization is responsible for directing traffic to the website, to the app, user sign up, they will do a lot of transactions hopefully, and ISO receives a commission from it.

I hope I was able to answer that question for you. As always if you have any questions or comments feel free to ask in the comments section below. I’ll be happy to answer. Till next time, take care.