The Green Sheet Online Edition
May 11, 2026 • 26:05:01
Street Smarts
Effectively market to your merchant portfolio: A guide for ISOs and MLSs 14
For ISOs and merchant level salespeople (MLSs), the merchant relationship is the foundation of long-term success. Merchants depend on you for payment expertise, technology and ongoing support, while you rely on them for residual income, portfolio growth and referrals.
However, in today’s payments environment—where global payments revenue exceeds $2.5 trillion annually—competition is fierce and merchants have more choices than ever. As a result, churn remains a persistent challenge, with financial services experiencing rates as high as 20 to 25 percent annually.
Engagement, not price
What’s most important to recognize is that merchants are not leaving solely because of price; more often, they leave because they don’t feel supported, educated or consistently valued. While ISOs and MLSs excel at acquiring and onboarding merchants, many fall short when it comes to maintaining engagement over time.
Retention, therefore, is not just a customer service metric; it is a core growth strategy. Studies show that increasing retention by just 5 percent can boost profits by 25 to 95 percent, and existing merchants are far more likely to adopt additional services than newly acquired ones. At the same time, the cost of acquiring a new merchant can be five to seven times higher than retaining an existing one.
Despite this, many portfolios operate in a “set it and forget it” mode, where communication slows after onboarding and merchants gradually disengage. Meanwhile, the market continues to evolve rapidly. More than 60 percent of merchants now operate across multiple sales channels, and many are actively exploring tools like surcharging, cash discounting, digital wallets and BNPL options.
Fintech competitors are capitalizing on this shift by aggressively marketing bundled, easy-to-understand solutions and the force that is agentic payments (which is a topic for another time). If ISOs and MLSs are not consistently communicating their value, competitors will fill that gap.
Dynamic, not static
To remain competitive, ISOs and MLSs must begin treating their merchant portfolio as a dynamic pipeline rather than a static book of business. Segmenting merchants by industry, size, processing volume and product adoption allows for more targeted and relevant outreach.
Personalization is critical, as tailored communication can increase engagement by more than 70 percent. A restaurant merchant, for example, will respond far more positively to messaging about online ordering integrations than to generic payment solutions. Understanding your merchants at this level enables you to position your offerings in ways that directly address their operational needs and growth goals.
Education also plays a crucial role in strengthening merchant relationships. Payments technology continues to evolve rapidly, and many merchants are not fully utilizing the tools already available to them. ISOs and MLSs who focus on educating their merchants—rather than simply selling to them—position themselves as trusted advisors.
Whether through webinars, short videos, email tips, or blog content, educating merchants on topics such as cost optimization, fraud prevention, or new payment acceptance methods helps build trust and reduces the likelihood of attrition. When merchants clearly understand the value you provide, they are significantly less inclined to seek alternatives.
In addition to education, leveraging technology is essential for analysis and staying proactive. CRM systems and reporting tools provide valuable insights into merchant behavior, helping identify trends such as declining processing volume, which can signal potential churn. These tools also highlight cross-sell opportunities and enable automated, personalized communication.
Action mandatory, not optional
In a competitive landscape increasingly shaped by fintech innovation and embedded payments, being proactive is no longer optional. For example, if a merchant’s volume drops significantly, that should trigger immediate outreach rather than go unnoticed.
While technology is important, strong relationships remain a key differentiator. Merchants want to feel like they have a partner invested in their success, not just a provider processing their transactions. Regular check-ins, business reviews and feedback initiatives such as surveys help reinforce that partnership.
Creating opportunities for merchants to share success stories or learn from one another can further strengthen engagement. This relationship-driven approach not only improves retention but also drives referrals, which tend to result in higher lifetime value and lower churn compared to other acquisition channels.
Relationship-based, not transactional
Consistent marketing is another critical, yet often overlooked, component of retention. One of the biggest mistakes ISOs and MLSs make is assuming that merchants remember the full scope of their offerings. Merchants are inundated with competing messages and focused on running their businesses. Without regular communication, your value can quickly fade from view.
Ongoing email campaigns, social media engagement and website content should reinforce your solutions, highlight new features and demonstrate continued value. Repetition is key: if you are not actively communicating your value, competitors will redefine it for you.
Marketing to your merchant portfolio is not just about visibility, it is about delivering consistent, relevant value. For ISOs and MLSs, retention drives residual income, engagement drives growth and education builds long-term loyalty.
By shifting from a transactional mindset to a relationship- and value-driven approach, you can reduce churn, increase merchant lifetime value and unlock new revenue opportunities within your existing portfolio. The goal is not simply to board merchants, but to keep them, grow with them and become a partner they would never consider replacing. 
Jaki Kackert is a seasoned marketing professional with experience supporting organizations across the payments and financial services industries. Through expertise in content marketing, digital strategy, public relations, and communications, she helps ISOs and Resellers build marketing strategies that attract, retain, and grow merchant portfolios. For more information please visit www.kackertmarketing.com or reach out to Jaki at jbkackert@gmail.com
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