On this episode of Payments Ground Game, hosts Elaina and Kevin Smith pull back the curtain on the process of monetizing payments for ISVs entering the space. Inspired by a recent conversation with an ISV looking to transition from Stripe to a more lucrative payments partnership, Elaina and Kevin walk listeners through the critical questions and considerations every software vendor should explore before signing on the dotted line.

From understanding your business model and mapping out the payments process, to divvying up responsibilities like underwriting, risk, and customer service, this candid, "off-the-cuff" discussion covers the nuts and bolts ISVs need to navigate. The duo dives into the importance of knowing your card mix, choosing between cookie-cutter or custom pricing, and the often overlooked complexities of hardware certification and billing.

Along the way, they stress the value of slowing down negotiations, investing in expert consultants and attorneys, and having thoughtful discussions about risk and revenue shares—rather than jumping straight to price. If you’re an ISV thinking about getting into the payments game, or just want to avoid the biggest pitfalls, this episode is packed with practical advice, real-world scenarios, and the kind of questions you should demand answers to before you launch.

In this episode, hosts Kevin and Elaina Smith roll up their sleeves to tackle one of the biggest milestones in the payments world: securing a direct processing agreement and an acquiring bank sponsorship.

Whether you’re pondering the shift from sales-driven retail to a more wholesale, operational model—or you’re just curious about what it really takes to get your own BIN and board merchants directly—this conversation takes you through the practical realities, financial implications, and operational readiness you’ll need to make it happen. You’ll get firsthand insights on when to consider going direct, common misconceptions about profitability, and the critical elements banks look for before handing over the keys.

Plus, Kevin and Elaina don’t shy away from the fine print. They break down the structure of processing agreements, minimums, reserve requirements, and those sneaky extra fees—from kilobyte charges to compliance reporting. You’ll also hear their candid takes on building your underwriting, risk, and accounting teams, and why operational expertise is make-or-break for this next phase of your business.

If you’ve ever considered the leap into direct processing—or want to understand why so many ISOs struggle with the transition—this episode is packed with actionable advice, cautionary tales, and a few rants about the realities behind the numbers.

On this episode of Payments Ground Game, we take a deep dive into the complicated, often misunderstood world of payment processing. Whether you’re new to the industry or a seasoned pro, you’ll appreciate their clear breakdown of what actually happens on the front end and back end of processing—from real-time authorizations to the nitty-gritty of batch settlement and clearing.

Elaina and Kevin use easy-to-understand analogies (remember Ma Bell and those old-school telephones?) to demystify how terminals, gateways, and virtual terminals communicate with processors, and why product certification to the front end is so critical. They’ll tackle the important distinctions between credit and PIN debit transactions, why reliability isn’t as simple as you think, and the real reasons those occasional outages seem to strike at the worst times.

On the back-end, they’ll explain why timing—like batching out at just the right moment—can make a big difference in your interchange rates, and what can go wrong if you or your processor slip up. Expect honest stories and industry insights about rejected transactions, interchange reclassifications, and the challenges of maintaining accuracy in a fast-changing payments landscape.

So, if you’ve ever wondered what “front end” and “back end” really mean for your business—and how your bottom line can be affected by everything from cut times to product certification—this episode will give you the tactical, real-world knowledge you need to scale your payments operation effectively.