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Acquirers and ISOs Can Provide Rewards to Merchants

Merchants require technical support from acquiring processors to accept card payments, but they are rarely loyal to those companies. In mature markets, acquiring is a commoditized business, with the primary competitive factor among providers being ever lower pricing.

Tuzo offers a value-added service that ISOs and acquirers can use to establish loyalty with their merchants. The company’s rewards platform assigns points based on the purchase volume of every credit card payment merchants accept. Points can be redeemed for travel, prepaid cards, electronic devices, vacation destinations and luxury goods. Tuzo also facilitates fulfillment.

Offered to ISOs and acquirers on a software-as-a-service basis, Tuzo’s portal shows merchants the number of points they have earned and how close they are to being able to redeem them in real time. ISOs and acquirers set the number of points per purchase volume processed, which will vary by merchant depending on the agreed-upon discount rate.

Tuzo connects to its customers via an API, integrating to their back-end processing systems. The service works with any processing platform. Merchants don’t need to change any equipment or how they use a processor’s service.

Available since the fourth quarter of 2024, Tuzo has so far signed 15 ISOs as customers. Collectively, those companies reach 150,000 merchants. Co-branding programs are available to larger acquirers and ISOs, along with apps customized by Tuzo.

Existing ISO customers have used Tuzo to open, renew and extend relationships with merchants. One large merchant plans to use rewards accrued to fund a raffle of gift items, making it a part of its customer loyalty program.

The Tuzo platform can be deployed by ISOs and acquirers outside the US.

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February 2025
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