Despite the critical role vendors play for ISOs, ISOs are generally unhappy with their vendors, and many plan to change vendors within the next year.
Boston, MA, April 7, 2010 – A new report from Aite Group examines the relationship between independent sales organizations (ISOs) and their vendors/providers. Based on a survey of 27 U.S. ISOs conducted by Aite Group from July to October 2009, the report shows how ISOs rate their vendors (bank acquirers, front-end processors, and back-end processors) and their levels of satisfaction with their services. It also identifies what factors ISOs deem important in choosing partners.
ISOs are a significant force in the merchant acquiring industry. They are the extension and sales force of banks that want to sign merchants but prefer not to rely entirely on their internal sales force. ISOs consider their various partners an important component to their success, and look to their vendors to provide a solid platform, low pricing, and responsive customer service in order to meet the demands of a changing market. Despite this, not one category of surveyed vendors has achieved a high level of satisfaction with their ISO base. Vendors that are negatively rated by their ISOs are sure to see them switch to a competitor.
"Overall, ISOs are barely happy with their providers," says Adil Moussa, analyst with Aite Group and author of this report. "Vendors must make a greater effort to understand the causes of their clients' frustration and mitigate them."
This 20-page Impact Report contains 13 figures. Clients of Aite Group's Retail Banking service can download the report.