The Experience ISOs Need
Electronic payments have continued to surge around the world. The movement towards electronic, online, digital payments has grown almost exponentially in the past decade, and there’s no reason to believe the trend will lessen in the coming decades and beyond. The opportunities for ISOs have never been greater. Concurrently, the laws surrounding ISO formation and operation are also continuing to expand and increase – thus it’s never been more important for ISOs to utilize expert, experienced legal assistance and guidance to navigate the always complex bankcard/payments industry.
What are ISOs?
As described above, ISOs (or Independent Sales Organizations) serve as the go-between for smaller businesses processing credit card based transactions or any electronic fund transfer regularly. There are several different ways this can work. An ISO will most commonly process electronic payments to Visa, Mastercard, American Express, or any other card issuer and receive a cut of the payment. Think of an ISO, like Square, Stripe, or Braintree, as the guy taking money from your hands and giving it to whomever you owe the funds to. When the money is safely in the other person’s pocket, that guy takes a few cents or dollars and pockets them. Easy.
ISOs aren’t regulated by federal agencies the way banks are, which gives them a lot of freedom to innovate and come up with exciting financial solutions. Particularly in this challenging day and age, having ISO solutions around has allowed everyone from a crafter selling on Etsy to someone baking brownies to raise money for a local charity to seamlessly process card payments. In some cases, this has meant that local cafes, shops, and other merchants have been able to stay afloat through the COVID-19 pandemic.
When would you need to worry about electronic payments litigation?
Global Legal Law Firm – ISO Experts Since 2008. We’re Here When You Are Ready.
What’s it all mean for you? With challenge comes innovation—this has always been true of human society. The past year has been a doozy – including for the payments industry, payment gateways, ISOs, and merchants alike. Nonetheless, human innovation has taken the bull by the horns. We’ve developed a vaccine in record time, figured out ways to come up with enough PPE for healthcare providers and educators around the United States, and rethought everything from schools to Zumba classes to account for our digital living environment. For all of this and the exciting developments in digital payments, we should be very excited, and yes, optimistic.
However, you should always be concerned that there may be loopholes you’re not thinking about, business decisions you could be more informed on, and potential dangers for you and your endeavors. That being said, by getting expert advice and maintaining an awareness of developments, you can be more enthusiastic rather than wary as we move together into this new time of increased online commerce.
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Our law firm can assist you with any legal questions you may have about any of the above, and our experienced business lawyers will fight for you both inside and outside of a courtroom. Use our contact form to schedule a free consultation.
Disclaimer: The information on this website is for general information purposes only. Nothing on this site should be taken as legal advice for any individual case or situation. This information is not intended to create, and receipt of viewing does not constitute, an attorney-client relationship. Prior results do not guarantee a similar outcome.