For ISOs & Brokers
Direct Funder vs. Broker: What ISOs Should Know
When you send a deal, where it lands matters. Here's the difference between a direct funder and a broker — and why it affects your close rate, your commission, and your merchant relationships.
What is a direct funder?
A direct funder underwrites deals in-house and funds them with its own capital. The decision-maker and the money are in the same building. Diesel Funding is a direct funder.
What is a broker?
A broker (or ISO) packages deals and shops them to funders. Brokers play a valuable role in the industry — but when a "funder" is actually re-brokering your deal, problems start.
Why the difference matters for ISOs
| Direct funder | Re-brokered deal | |
|---|---|---|
| Speed | One underwriting pass, decisions in as little as 24 hours | Every hop adds days |
| Your commission | Paid directly by the funder | Split across parties |
| Deal control | You know exactly who has your file | Your file gets shopped without your knowledge |
| Merchant protection | One funder, one relationship | Your merchant's info spreads to parties you never chose |
| Backdooring risk | Reputable direct funders protect submissions | Every extra hand increases the risk |
How to tell if you're working with a direct funder
Ask these questions: Do you fund from your own balance sheet? Who performs underwriting? Can I speak with the underwriter on my file? A direct funder answers all three without hesitation — we do.
Do you fund from your own balance sheet?
Who performs underwriting?
Can I speak with the underwriter on my file?