The payment services industry is now booming, arousing genuine interest from startuppers to enter this niche. But what could be an easy start to providing payment processing solutions to customers? Many will answer ISO/MSP and be quite right.
If you have read our previous article about ISO/MSP, you probably know what these organisations are and what they do. As a logical follow-up, this article will focus on a crucial topic — the pitfalls and challenges that any beginner or experienced ISO/MSP may encounter. What’s more, we will suggest some efficient ways to deal with these issues and boost your business efficiency. Here we go.
If all budding ISO/MSPs were aware of the challenges they might face along the way, they could make far fewer mistakes, saving time, money, and nerves. Of course, there’s no magic wand to eliminate all these issues, but a competent approach and a couple of tools can make things much easier.
So, get to know the major payment challenges for ISO/MSP and the solutions we can offer.
Challenge 1: Building processing solution
ISO/MSPs are not just sellers. There are plenty of functions they can perform:
- Opening merchant accounts
- Processing chargebacks
- Fraud monitoring
- Selling or leasing POS terminals
- Authorising and processing transactions
- Collecting and analysing payment data.
If you want to provide value-added services to your merchants and stay competitive, you’ll need robust technological infrastructure. But have you wondered how much time and resources it will take to build a payment processing software? Seasoned industry players know that it will take no less than three years. Add to this the huge costs for the development team and infrastructure maintenance.
Corefy’s solution: Realising how cumbersome it is to develop the processing software on your own, we provide a white label solution for ISO/MSP businesses. It’s a ready-made scalable platform that doesn’t require any development effort from your side. By launching your own-branded ISO/MSP on a white label model, you can start providing a huge range of processing services to your clients in a month or even less. It’s faster, cheaper, and cost-efficient.
Challenge 2: Hiring and maintaining an IT team
If you’re determined to develop and maintain your own processing anyway, you’ll have to enlist the support of a skilled development team. The people you hire will be the driving force behind your ISO/MSP, covering technical issues, dealing with possible processing accidents, and upgrading the system in line with rapidly changing merchant needs.
And it’s about time again: searching, hiring, and onboarding employees is not a quick matter. Plus, knowledgeable fintech specialists should be paid well for their work. Not every ISO/MSP can afford such expenses.
Corefy’s solution: Payment team as a service may be a great option for ISO/MSP business. By leaving all the technical matters to our dedicated specialists, you can focus on your business development. Our white label solution with professional support and technical maintenance will cost you about one developer’s salary per month. Upgrades and updates are also on us.
Challenge 3: Registrations and audits
Each ISO/MSP must register with credit card associations (Visa, Mastercard) to handle payment processing duties. This is a time-consuming and painstaking procedure, which includes a thorough examination of all the applicant’s documentation. Experts suggest allocating for no less than six months to become a legal ISO/MSP.
Corefy’s solution: Although there’s a great deal of work to be done by yourself (like a business plan, registering a trademark, brand assets, etc.), submitting to a white label solution requires a minimum of paperwork and time from your side. Plus, you protect yourself against the risk of costly mistakes by enlisting the support of our Account Managers, who will be there at any time to answer all your questions.
Learn about Corefy’s client onboarding.
Challenge 4: Managing financial flows and risks
Having a processing solution alone is not enough for your ISO/MSP to stay afloat. The more merchants you have on board, the more difficult it is to manage transaction flows and identify payment risks. It’s equally important to track the key metrics of your business to understand where you are moving and whether you’re on the right track. Thus, the lack of analytics and management tools here may cost you clients and your carefully-crafted reputation.
Corefy’s solution: Our Analytics solution puts all the performance metrics in front of your eyes, keeping you aware of the health and performance of your business. You can track transaction statuses, merchant account balances, storefront conversion rates, and many other valuable metrics with auto-generated reports at your fingertips.
Challenge 5: Signing contracts with new partners and clients
The highly-competitive ISO/MSP environment makes them literally fight for every client. It’s extremely challenging for newcomers to get their first clients on board, especially without an impressive base of partner banks. No one knows how much time and effort you will have to spend to build a client base and start making a profit.
Corefy’s solution: Understanding the needs of ISO/MSP businesses, we provide our clients with access to our global merchants network, empowering them to diversify and grow their portfolio of partners and clients. More than 150+ integrations are already established for you, so you can provide processing services right from the start.
Well, you’ve seen how rocky the ISO/MSP path can be. But the good news is that Corefy’s advanced tools and solutions help to overcome all the challenges with ease and enhance your ISO/MSP’s efficiency. Book a demo with us to see it with your very eyes.