In a typical card transaction, fees are largely set by interchange and scheme costs. US businesses paid about $187.2 billion in processing fees to accept credit, debit, and prepaid cards in 2024. Payment processing agents guide businesses on choosing processors and pricing structures, and they can help businesses save on those fees.

Evaluating an agent requires an understanding of how they work across the four levers of your payment setup: pricing, risk and disputes, funding, and operational support. Then, you need to see how those choices align with your transaction data.

Below, we’ll explain what payment processing agents do, how they affect daily operations, and how to assess and choose the best one for your business.

What’s in this article?

• What are payment processing agents?
  
• How do businesses work with payment processing agents to handle transactions?
  
• What challenges or compliance requirements do agents face?
  
• How can businesses assess and select the right payment processing agent?
  
• How Stripe Payments can help
  

What are payment processing agents?

Payment processing agents, sometimes called merchant services agents or independent sales organization (ISO) agents, act as intermediaries between businesses and other businesses that move money in the background. They are independent sales representatives or organizations registered with acquiring banks, not processor employees, and they earn a share of transaction fees for onboarding businesses.

At their best, agents simplify everything related to accepting payments. Rather than figure out business accounts, underwriting, or terms such as “interchange plus” on your own, you can receive guidance from the agent. They help you choose the right processor and tools, explain the contract and pricing structure, and ensure onboarding is straightforward. Many stay involved long after setup, serving as the business’s first point of contact when things break or the business wants to expand.

How do businesses work with payment processing agents to handle transactions?

Some businesses meet agents through referrals or outreach, while others search for one once payments get more complex. They typically connect with an agent when they’re ready to accept card or digital payments but don’t have the bandwidth to manage processors, contracts, or compliance alone. A capable agent handles these obstacles to make payment acceptance a transparent, structured process.

Here’s how:

Understanding the business

The agent learns how the business operates, including whether it is online or in person, is based on subscriptions or one-time payments, has a low or high volume, or has one location or multiple sites. This context shapes which acquiring bank or processor it should choose, what pricing model fits best, and which tools make payments easier.

Guiding the merchant account setup

Applying for a merchant account requires risk underwriting by the acquiring bank and processor and plenty of detail. The agent helps gather the documentation, explains fees and terms, and negotiates better rates or waived costs when possible. They help the business avoid contracts that aren’t a good fit.

Integrating the technology

Once the application is approved, the agent helps the business go live. This might involve installing terminals, configuring point-of-sale (POS) systems, setting up online gateways, or training staff on day-to-day use.

Providing ongoing support

After launch, the agent becomes the business’s payment partner. These are some ways they might support the business:

• Troubleshooting: Sorting terminal errors, payout delays, and failed transactions

• Chargeback guidance: Helping businesses respond quickly and understand their dispute obligations

• Fine-tuning: Spotting fee-saving opportunities or recommending tools that make operations more manageable

• Scaling support: Adding locations, updating hardware, and expanding into online sales

A great agent is the business’s direct, informed point of contact. They can be a liaison between the business and the processor or acquirer, helping to resolve issues faster than a generic support queue.

What challenges or compliance requirements do agents face?

Payment processing agents carry a heavy legal, technical, and reputational burden. They work in a heavily regulated environment, which means the job involves far more than signing up new businesses.

Here are the challenges they face:

Security, registration, and oversight

Agents must register with card networks such as Visa and Mastercard through a sponsoring acquiring bank to legally operate as an ISO. The process includes background checks and strict rules on how they handle business data and interact with processors. They’re also responsible for ensuring the products and merchant accounts they sell comply with the Payment Card Industry Data Security Standard (PCI DSS). Cutting any corners could jeopardize their ability to sell services and result in termination of their registration with the card networks.

A fast-moving, fragmented market

The payment industry is diverse and changing. There are thousands of processors and devices in the payment space, and they’re constantly shifting.

Agents need to manage:

• Changes in interchange and assessment (network) fees, data rules, and fraud liability

• New payment technologies, including Tap to Pay, real-time payments, digital wallets, and more

• Niche processors for high-risk or specialized industries

Many agents choose to specialize, but even then, staying current is part of the work.

Clear communication and transparency

Because agents are often a business’s primary guide through payment setup, clarity matters. Businesses depend on them to break down pricing models, contract terms, and service commitments in plain language. The best agents are up front about fees, including their own compensation, and help businesses make informed, confident decisions.

How can businesses assess and select the right payment processing agent?

The right agent should make your payment setup feel bespoke, not forced. They will provide the mechanics, guidance, and long-term support that fit how you operate today and how you plan to grow.

Here’s what to look for:

Capabilities

Choose an agent who understands your business model and can recommend tools that match how you operate. If you sell in person, they should provide the correct terminals. And if you run subscriptions or accept cross-border payments, they must support all parts of those processes.

Ask a potential agent:

• What processors and payment methods do you work with?

• How do you decide which provider fits a particular business?

Clear, specific answers are a good sign.

Cost

A good agent will walk you through all fees in plain terms: interchange fees, network assessment fees, processor markups, monthly fees, hardware pricing, chargeback fees, PCI charges, and more.

Ask a potential agent:

• How is your compensation structured?

• Are there contract minimums, early termination fees, or tiered pricing structures?

The goal is transparency, not simply the lowest advertised rate.

Support and responsiveness

Payment problems are inevitable. What matters is how quickly you can get help.

Ask a potential agent:

• Will I have a direct contact?

• What happens if something goes down? Whom do I call, and how quickly can they respond?

You’ll benefit from working with someone who has relationships with the acquiring bank and processor rather than only the sales side.

Compliance fluency

Your agent should have an excellent grasp of PCI DSS requirements and guarantee the systems they recommend support secure data handling. If they can’t speak confidently about this, keep looking.

Contract terms

Before you sign, review the merchant services agreement with your agent. Ask them to explain anything unclear, especially regarding contract length, fees, and how to exit if needed.

How Stripe Payments can help

Stripe Payments provides a unified, global payment solution that helps any business—from scaling startups to global enterprises—accept payments online, in person, and around the world.

Stripe Payments can help you:

• Optimize your checkout experience: Create a frictionless customer experience and save thousands of engineering hours with prebuilt payment user interfaces (UIs), access to 125+ payment methods, and Link, a wallet built by Stripe.

• Expand to new markets faster: Reach customers worldwide and reduce the complexity and cost of multicurrency management with cross-border payment options, available in 195 countries across 135+ currencies.

• Unify payments in person and online: Build a unified commerce experience across online and in-person channels to personalize interactions, reward loyalty, and grow revenue.

• Improve payment performance: Increase revenue with a range of customizable, easy-to-configure payment tools, including no-code fraud protection and advanced capabilities to improve authorization rates.

• Move faster with a flexible, reliable platform for growth: Build on a platform designed to scale with you, with 99.999% historical uptime and industry-leading reliability.

Learn more about how Stripe Payments can power your online and in-person payments, or get started today.