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Education

match, and annual fees. All of this is key to setting
the expectation correctly with your merchants.
• Test deals: When you are ready to submit your first
few deals, it is a great time to assess the average
approval times and underwriting approval leniency.

• Deployment: Once the account is approved, how
long does it take for a VAR to be provided? If the
new partner is providing equipment, how quickly
does it ship out?

• Hold times: As you call different departments for
services, note the average hold times. Assess the
Choosing the right overall experience your merchants would likely
have when calling in.
ISO partner - Part 2 • Checking residuals: This is the big one and essential
to assess. When your first residual payment comes,

By Hawkins Siemon review your residual split. Unfortunately, ISOs often
promise splits that aren't a true revenue share. As an
Elevate Payment Alliance example, you may have been promised 70 percent.
However, your residual could be 70 percent of what
hoosing a partner is one of the most important the ISO made not 70 percent of net profit on the
decisions a payments professional makes. As a account.
recruiter for a super ISO for the last 18 years,
C I've written a two-part series containing tips False advertising seems to be increasingly prevalent.
that may be helpful to you in choosing the right partner- For companies offering true revenue sharing, it is
ship. In Part 1, published May 27, 2019, in issue 19:05:02, frustrating to see competitors advertise big splits
I covered features to look for when choosing an ISO and then not live up to their promises. This seems to
partner, including products, compensation, service and be even more rampant with cash discount programs.
integrity. I also mentioned important things to include in All partners should always check their splits.
the sales partner agreement. How to analyze your residuals

What to look for
The easiest way to check residuals is to board a merchant
This article focuses on what to look for during the initial with iterchange-plus pricing. Take the total the merchant
months of your new partnership. was charged, minus interchange costs and any association
fees. This leaves the mark-up above interchange. Then
• Executed sales partner agreement: Once you have deduct your Schedule A costs. Usually, this is your
signed and submitted the sales partner agreement, transaction fee charged minus your costs, leaving true
request an executed version of the document. Many profit. You can also do this with monthly fees.
partners do not ask for this, but it's a good idea to
possess a copy of the agreement executed by both This should leave you with the real 100 percent net profit
parties. on the account. Then, multiply your 100 percent profit
dollar amount by your split. This should give you a rough
• Initial support experience: At the beginning of your idea of whether your payment is close to the split you were
partnership, you will have many questions. The promised.
response time and attitude toward your questions
will say much about the priorities of the organization I would be happy to help guide you through the process of
you're working with. If the ISO fails to recognize analyzing your residuals. It's hard work selling merchant
the importance of a good initial experience for new services. You should be paid what you were promised.
sales partners, it might be a warning sign of other
problems.
Hawkins Siemon is the founder and CEO of Elevate Payment Alliance.
• Pricing: Before submitting a deal, try to gain a Elevate is an ISO founded on doing business the right way and build-
complete understanding of all pricing, including ing strong, long-lasting relationships. Our mission is to grow Elevate
how to fill out the merchant pricing section for the based on the success of its sales partners, merchants, and employees.
type of pricing you're trying to achieve. Also, make This is why we have created the first ISO in the industry that offers
sure you are clear on all monthly fees that will be ownership to both its Sales Partners and Employees. Contact him
billed to the merchant, for example, account on file, at hawkins@elevatepaymentalliance.com
statement, PCI or regulatory, non-PCI, non-TIN
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