By Hawkins Siemon
Elevate Payment Alliance
Choosing a partner is one of the most important decisions a payments professional makes. As a recruiter for a super ISO for the last 18 years, I've written a two-part series containing tips that may be helpful to you in choosing the right partnership. In Part 1, published May 27, 2019, in issue 19:05:02, I covered features to look for when choosing an ISO partner, including products, compensation, service and integrity. I also mentioned important things to include in the sales partner agreement.
This article focuses on what to look for during the initial months of your new partnership.
False advertising seems to be increasingly prevalent. For companies offering true revenue sharing, it is frustrating to see competitors advertise big splits and then not live up to their promises. This seems to be even more rampant with cash discount programs. All partners should always check their splits.
The easiest way to check residuals is to board a merchant with iterchange-plus pricing. Take the total the merchant was charged, minus interchange costs and any association fees. This leaves the mark-up above interchange. Then deduct your Schedule A costs. Usually, this is your transaction fee charged minus your costs, leaving true profit. You can also do this with monthly fees.
This should leave you with the real 100 percent net profit on the account. Then, multiply your 100 percent profit dollar amount by your split. This should give you a rough idea of whether your payment is close to the split you were promised.
I would be happy to help guide you through the process of analyzing your residuals. It's hard work selling merchant services. You should be paid what you were promised.
Hawkins Siemon is the founder and CEO of Elevate Payment Alliance. Elevate is an ISO founded on doing business the right way and building strong, long-lasting relationships. Our mission is to grow Elevate based on the success of its sales partners, merchants, and employees. This is why we have created the first ISO in the industry that offers ownership to both its Sales Partners and Employees. Contact him at firstname.lastname@example.org.
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