Independent Business Owner (IBO or Signatory) relationships can add additional MIDs or even establish an U.S. LLC, Corp, Bank Account, etc.
If you have maxed out your MIDs for your company or you are an offshore company looking for a US merchant solution an Independent Business Owner may be the perfect solution for you! An IBO is a US citizen who is interested in partnering with businesses who are in need of additional MIDs, a US presence Signatory, etc.
An IBO makes no decisions, does no physical work and cannot interfere with your busness in any way. The are simply a signor for bank accounts and merchant services.
Typically the IBO has perfect credit, no criminal history, a solid working background and personal funds in the bank. This could be a retired individual, someone looking for additional income, etc.
Typically the arrangement is from 3%-6% of gross depending on the type and history of the business they are entering into an agreement with.
The parent company and IBO enter into a new LLC or Corp. This entity opens the merchant account and bank accounts with the IBO as the Signatory. The funds are handled through Scene Premiere as the third party distributor intermediary. No funds are distributed with out both parties getting compensated per the IBO/Principal contract.
Remember…always keep up to date with merchant account fraud and credit card fraud education! Please see the following to help advise about credit card fraud and merchant account fraud and how you can avoid the issue:
PCI | FBI | FTC | Stop Fraud .gov | HG | USA.gov | DOJ | SS | FFIEC | CSOS
Contact us anytime with your merchant processing questions.
