[MCNetwork]

If your program rates are in the 1.20-1.25, why would ISO business be detrimental for you? You certainly have enough room to tack commission on top of those buy rates and still be competitive. It's a win-win situation if you incorporate ISOs.

[Finance1]

If your program rates are in the 1.20-1.25, why would ISO business be detrimental for you? You certainly have enough room to tack commission on top of those buy rates and still be competitive. It's a win-win situation if you incorporate ISOs.

We tested out the iso channel but it didn't work. ISOs found us through our ppc and liked what they saw so we let a couple send us some business. Even though we fully explained that our rates/programs were geared towards lower risk/rate sensitive clients we ended up getting a bunch of shopped around and beat up merchants. Exactly what we weren't looking for. Then when we did get what we were looking for we didn't pay 12 points so it wasn't good enough. ISO's want the lowest rates and highest commissions. Can't blame them but it doesn't work for us.

On the other hand, we signed a couple processing agents who just wanted to have their clients well taken care of and getting them fair deals regardless of high commission checks. These relationships are working perfectly. We we're put off by the straight MCA iso's though. Too much of a shark attitude. Reputation is really important as a cash company. Especially smaller ones. We protect ours intensely. It would be counterproductive to take a reputation hit from the actions of an ISO. Another reason we decided the channel wasn't going to work.

It all comes down to business model and ours doesn't need an outside channel. We can turn the marketing faucet off and on as necessary and keep an adequate pipeline going at all times. If we do decide to get bigger (or cost to acquire gets too large) then we will revisit.