Is tiny the next big thing for ISOs? Or is bigger better?

That’s the dilemma ISOs have been facing ever since Square Inc. came on the scene two years ago, promoting card acceptance to babysitters, gardeners and one-man-band merchant outfits.

Industry consultant Todd Ablowitz says ISOs need to adopt a more nuanced strategy when it comes to dealing with micromerchants. “Most ISOs I talk to have very little interest in micromerchants. The argument is not to go after micromerchants, but to go after new acceptors that can be material to your bottom line,” says Ablowitz, president of Denver-based Double Diamond LLC.

ISO and Agent, October 24, 2012