🤝 ISO Partnership & Reseller Compliance
🏢 ISO Program Overview
SMRT Payments operates a comprehensive Independent Sales Organization (ISO) program, enabling qualified partners to resell payment processing services while maintaining full regulatory compliance. Our ISO network operates under strict card brand requirements and federal regulations governing merchant services and payment facilitator relationships.
1. Card Brand Registration & Compliance
Visa & Mastercard ISO Requirements:
- ISO Registration: Active registration with Visa and Mastercard as Independent Sales Organizations
- Principal Officer Verification: Background checks and financial verification of ISO principals
- Financial Requirements: Minimum net worth and liquidity requirements maintained
- Bond & Insurance: Required surety bonds and professional liability coverage
- Compliance Monitoring: Ongoing compliance with card brand rules and regulations
Card Brand Rule Compliance:
- Merchant Onboarding: Proper due diligence and risk assessment procedures
- Account Monitoring: Continuous monitoring of merchant portfolios
- Chargeback Management: Proactive chargeback prevention and resolution
- Data Security: PCI DSS compliance for all merchant accounts
- Fraud Prevention: Implementation of fraud detection and prevention measures
📋 ISO Registration Status
Visa ISO Registration: Active member in good standing
Mastercard ISO Registration: Certified Independent Sales Organization
Annual Compliance Review: All card brand requirements met and verified
Portfolio Management: Full compliance monitoring across all merchant accounts
2. Federal & State Regulatory Compliance
| Regulation |
Compliance Requirement |
ISO Responsibilities |
SMRT Support |
| Money Transmitter Laws |
State licensing requirements |
License compliance verification |
Legal guidance and support |
| Bank Secrecy Act (BSA) |
Anti-money laundering compliance |
Suspicious activity reporting |
AML training and monitoring |
| USA PATRIOT Act |
Customer identification program |
Enhanced due diligence |
KYC procedures and tools |
| Fair Credit Reporting Act |
Background check compliance |
Proper authorization procedures |
Compliant screening services |
3. ISO Partner Requirements
Qualification Criteria:
- Business Experience: Minimum 2 years in payment processing or related industry
- Financial Stability: Demonstrated financial capacity and business viability
- Clean Background: No criminal history or regulatory violations
- Professional References: Industry references and business verification
- Insurance Coverage: General liability and errors & omissions insurance
Ongoing Obligations:
- Sales Training: Completion of SMRT Payments certification program
- Compliance Training: Annual updates on regulatory requirements
- Portfolio Management: Active monitoring of merchant accounts
- Financial Reporting: Regular financial statements and updates
- Quality Standards: Maintenance of service quality and customer satisfaction
🎯 ISO Performance Standards
Merchant Retention: >90% annual merchant retention rate requirement
Chargeback Rates: Portfolio chargeback rates must remain below 1%
Compliance Score: Minimum 95% compliance rating on all audits
Customer Service: Timely response to merchant inquiries and issues
4. Merchant Onboarding Compliance
Due Diligence Requirements:
- Business Verification: Secretary of State registration and business license verification
- Identity Verification: Principal identity verification using government-issued ID
- Financial Assessment: Bank statements, tax returns, and credit evaluation
- Business Model Review: Analysis of business operations and revenue sources
- Site Inspection: Physical or virtual business location verification
Risk Assessment Process:
- Industry Classification: SIC/MCC code assignment and risk categorization
- Transaction Patterns: Expected processing volumes and ticket sizes
- Chargeback History: Previous processing history and dispute analysis
- Geographic Risk: Business location and processing jurisdiction analysis
- Reputational Check: Online presence and customer review analysis
5. Contract & Documentation Requirements
ISO Agreement Terms:
- Territory Rights: Defined geographic or vertical market territories
- Compensation Structure: Commission schedules and residual payments
- Performance Standards: Minimum performance requirements and metrics
- Termination Clauses: Conditions for agreement termination and transition
- Liability Allocation: Risk sharing and indemnification provisions
Merchant Processing Agreements:
- Terms & Conditions: Clear processing terms and fee structures
- PCI Compliance: Data security obligations and compliance requirements
- Chargeback Liability: Dispute resolution and liability allocation
- Termination Rights: Account closure procedures and final settlement
- Regulatory Disclosures: Required state and federal disclosures
📄 Documentation Standards
All ISO partnerships require comprehensive documentation including executed agreements, compliance certifications, background verification records, and ongoing performance monitoring reports. Documentation must meet card brand and regulatory requirements for record retention and audit purposes.
6. Risk Management & Monitoring
Portfolio Risk Management:
- Transaction Monitoring: Real-time monitoring for unusual transaction patterns
- Velocity Checking: Analysis of processing volume changes and spikes
- Chargeback Monitoring: Early warning systems for increasing dispute rates
- Account Review: Regular review of merchant account performance
- Risk Scoring: Dynamic risk assessment and adjustment procedures
Compliance Monitoring:
- PCI Compliance: Regular assessment of merchant PCI DSS compliance
- Regulatory Changes: Monitoring and implementation of new regulations
- Card Brand Updates: Implementation of card brand rule changes
- Quality Assurance: Regular audits of ISO performance and compliance
7. Training & Certification Programs
ISO Certification Requirements:
- Initial Training: 40-hour comprehensive payment processing certification
- Product Training: Specialized training on SMRT Payments services and systems
- Compliance Training: Regulatory compliance and risk management education
- Sales Training: Professional sales techniques and customer relationship management
- Ongoing Education: Quarterly updates and continuing education requirements
Agent Training & Support:
- New Agent Orientation: Comprehensive onboarding for ISO sales agents
- Product Knowledge: Detailed training on payment processing solutions
- Compliance Awareness: Understanding of regulatory requirements and restrictions
- Customer Service: Professional customer interaction and problem resolution
- Technology Training: System access and utilization training
🎓 Certification Maintenance
Annual Recertification: All ISO partners must complete annual recertification training
Continuing Education: 20 hours of approved continuing education credits per year
Compliance Updates: Mandatory training on regulatory and card brand changes
Performance Review: Annual performance evaluation and improvement planning
8. Compensation & Residual Management
Commission Structure:
- Upfront Bonuses: New account activation bonuses based on processing volume
- Residual Payments: Monthly residual income from active merchant accounts
- Performance Bonuses: Additional compensation for exceeding performance targets
- Portfolio Growth: Escalating residual rates for portfolio expansion
- Retention Bonuses: Rewards for maintaining high merchant retention rates
Residual Protection:
- Account Ownership: Clear ownership rights to originated merchant accounts
- Transfer Rights: Ability to transfer residuals upon retirement or sale
- Protection Guarantees: Residual payment guarantees for compliant accounts
- Termination Protection: Continued residuals on compliant accounts after termination
ISO Program Launch: 2018
Active Partners: 150+ ISOs nationwide
Merchant Portfolio: 25,000+ active accounts
Last Updated: January 20, 2025
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