Which entity typically does NOT qualify as an agent in payment processing?

In the context of payment processing, a merchant selling goods typically does not qualify as an agent because a merchant operates as a principal in the transaction. Merchants engage in selling products or services directly to end customers and, in doing so, they handle their own payment transactions rather than acting on behalf of another entity. The legal and operational role of a merchant includes responsibility for pricing, inventory, and customer interactions, which positions them as the main party in the sales process rather than an intermediary or agent.

In contrast, entities such as licensed banks, independent sales organizations (ISOs), and third-party servicers engage in activities that involve acting on behalf of another entity. They facilitate payment transactions by providing various services including processing payments, managing relationships between merchants and payment networks, or handling aspects of payment compliance and regulation.

Thus, the role of a merchant in the payment ecosystem is fundamentally different from that of an agent, making it clear why they do not qualify as an agent in the payment processing context.