An independent sales agent is a person or small business that sells merchant services, such as card acceptance, terminals and payment gateways, without being an employee of the company that provides them. Agents typically work under contract with an independent sales organization (ISO) or directly with a merchant acquirer, finding merchants, explaining pricing, collecting application documents and supporting the merchant after sign-up. They are paid through upfront bonuses and residuals, meaning a share of the ongoing processing revenue from the merchants they bring in.
Because agents are not registered with the card schemes themselves, the acquirer and the ISO remain responsible for merchant underwriting and compliance with scheme rules. Agents must follow the acquirer's policies on disclosures and prohibited merchant types. Poor practices by some agents, such as misleading pricing or long contracts with high cancellation fees, have attracted regulatory attention and complaints.