Top 5 Payments Acronyms You Should Know
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Cut through the jargon and speak the language of embedded payments like a pro.
If you’ve recently found yourself in a meeting where terms like “ISO,” “MID,” or “BIN” are flying around and you’re nodding politely while quietly Googling under the table—you’re not alone.
The world of payments is full of acronyms. And while some are just technical shorthand, others can directly impact your strategy, margins, and partner relationships. At Revolv, we’ve spent years helping founders, boards, and revenue teams navigate this ecosystem—and one of the first steps is speaking the language.
Here are five key acronyms we think every SaaS or vertical software company should understand—plus why they actually matter.
1. ISO – Independent Sales Organization
What it means:
An ISO is a third-party company that’s authorized to resell merchant services (like payment processing) on behalf of acquiring banks.
Why it matters:
In embedded payments, ISOs can either be a powerful partner—or a complicated intermediary. Understanding how they fit into the payments stack can help you make better vendor decisions, negotiate clearer commercial terms, and ensure you’re not leaving margin on the table. If you’re working with a processor through an ISO, it’s important to know who holds the contractual relationship and how revenue is shared.
Revolv tip:
Always ask: Am I working directly with the processor or through an ISO? Transparency here can affect everything from pricing to support.
2. MID – Merchant Identification Number
What it means:
A MID is a unique identifier assigned to a merchant account. It allows payment processors and banks to track and manage payment activity.
Why it matters:
If you’re offering embedded payments, your platform might be the master merchant—or your customers may each have their own MIDs (sub-merchants). Understanding this structure affects how you handle risk, underwriting, onboarding, and transaction monitoring.
Revolv tip:
Know whether your payment setup uses a PF (Payment Facilitator) model or ISO-submerchant structure. That distinction defines your responsibilities and risk profile.
3. BIN – Bank Identification Number
What it means:
A BIN is the first 6–8 digits of a credit or debit card number and identifies the issuing bank or institution.
Why it matters:
BIN data helps route transactions correctly, identify card types (debit, credit, prepaid), and even detect fraud. For platforms managing embedded payments, having access to BIN-level insights can inform product decisions, optimize interchange costs, and improve transaction approval rates.
Revolv tip:
If your payments provider offers BIN-level data, use it. It can help you understand card mix, issuing geographies, and even which customers may have higher chargeback risk.
4. IC++ – Interchange Plus Plus
What it means:
A pricing model where the merchant pays the actual interchange fee (paid to the card-issuing bank), plus the card network fee, plus a processor markup.
Why it matters:
IC++ is more transparent than flat-rate pricing (like “2.9% + 30¢”), but it also requires deeper analysis. For vertical SaaS companies embedding payments, understanding how IC++ works helps you model revenue potential more accurately—and spot hidden costs.
Revolv tip:
If your provider uses IC++, get access to detailed reporting. The "plus plus" fees can add up, and they’re often negotiable with the right volume or leverage.
5. ISV – Independent Software Vendor
What it means:
An ISV is a company that develops and sells software—often for a specific vertical—while embedding payments and other financial services into their platform.
Why it matters:
If you're reading this, chances are you are an ISV. That means you have leverage in the payments ecosystem—but only if you understand how to use it. The ISV model is at the heart of the embedded finance opportunity, turning payment volume into revenue and stickiness.
Revolv tip:
Build a business case that reflects your value as an ISV. Processors and banks know how powerful your distribution is—make sure your economics reflect that.
At the end of the day, understanding the language of payments isn’t just about sounding fluent—it’s about making smarter decisions for your business. These acronyms represent real mechanics that shape your economics, your risk profile, and your growth potential. The more you understand them, the better positioned you are to design a payments strategy that actually works for you. At Revolv, we bring clarity to complexity—so you can stop translating and start scaling.
