By Elaina Smith
If you're an agent selling merchant services, you know you have a variety of ISOs to choose from. The challenge comes in finding an ISO partner that offers best-in-class products and services that meet your merchants' needs, provides the most competitive revenue share and pricing, and shares your core values.
Here, I'll focus on finding an ISO that offers the most competitive revenue share and pricing, so you can maximize your earnings potential.
First, I'll define a few terms since some of them can be used differently depending on which party in the agreement uses them.
Also, carefully review and negotiate the agreement itself. Some ISOs require that you board a certain number of deals each month, or maintain a billing or residual minimum on your portfolio. When you don't meet this threshold, your residuals will not be paid. This concept is called vesting. It's important to understand not all ISOs do business this way.
Residuals are paid after the ISO/agent agreement has been signed and the merchant has been billed. That said, it's hard to have control over what's already happened. But here are some things you can do to have some control and oversight over your residuals
You have a choice when entering into an agreement with an ISO. While negotiating your agreement is important, it's also essential to find an ISO partner that meets the needs of your merchants. The most successful, long-term relationships are built on not only shared profits but also shared values and goals. By doing groundwork before entering into a new ISO relationship and setting up a process to regularly review your residuals, you can ensure you are making the most of your sales efforts.
Elaina Smith is the CFO of Secure Bancard, a wholesale ISO based in Alpharetta, Ga. Most recently, she helped develop and implement Pioneer by Settlement Data Systems, an SaaS solution that enables ISOs to run their business more efficiently. She can be reached at firstname.lastname@example.org.
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