Residual Payouts

Residual Payouts

Most ISOs have revenue streams from multiple processors as well as other value-add products. It can get complicated when you are paying residuals from multiple sources to agents, their downlines, and your referral partners. And if you are maintaining this data in spreadsheets, you don’t get the benefit of month-over-month trend reporting.

With POS Portal’s Residual Payout Engine, you can upload bankcard and non-bankcard profitability data and use it to calculate residual payouts. When deals are boarded the system maintains the amounts to pay out agents and referral partners. After you upload the profitability data, you can calculate payouts and your agents and partners can view their residual data directly in the system at both a summary and merchant level. Because you are uploading data and calculating residuals each month, you can create reports and dashboards that tell agents and partners what they earned over time.

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HIGHTLIGHTS

Residual File Upload

We certify the residual files that our customers get from their processors. Once files are certified, you simply select a file type and upload it into the system. The data becomes available for reporting and for paying out agents and partners. For non-bankcard residual streams, there’s simple format that allows you to upload expense, revenue, and profit for any product. When the format of a file changes, such as a new column is added or a new fee is introduced, a validation process will notify you that an exception has occurred.

Portfolio Rollup

When you have multiple processors, it’s difficult to get a roll-up view of your bankcard expense and revenue across your portfolio. Having the ability to upload monthly summary data allows you to see a summary of expense and revenue broken down into fee buckets across processors. For example, you can see total amounts paid in discount by the merchant, total amount paid to the card networks by the processors, leaving a total revenue amount. Out of that revenue amount you remove your cost, and you’re left with a gross profit that is used to payout residuals. The Portfolio Rollup view allows you to reconcile the amount you’re getting paid from your processors and calculate payouts for your agents and partners.

Payout Rules

Keeping track of who gets paid on what can be a daunting task. With P2’s Residual Payout Engine, you can store default payout rules for agents and for referral partners. Rules can be simple percent revenue share on profit or more complex at individual billing elements, with buyrates and percent revenue share on profit for each element. Agents can have different payout rules, depending on what role they play in a given deal. For example, an ISO office owner might send you his deals directly at get 25% rev share. But when one of his downlines sends you a deal, the downline might get 20% and the ISO office owner gets 5%. The default payout rules can be overwritten at the time a deal is boarded. Payouts are calculated at the merchant level.

Calculating Payouts

Payouts are calculated at the merchant level. You can include manual adjustments to payouts for a given merchant or for a given agent. For example, you might do a negative adjustment for equipment provided to a merchant, or you might give an agent a positive bonus for signing 10 deals in the period. If an agent’s default payout rules change, the merchant level payouts remain the same as they were when the deal was boarded. When you calculate payouts, the payout amounts are in a draft mode until you choose to publish them.

Display Residuals

Emailing spreadsheets to agents and partners with their residual amounts has obvious pitfalls. There’s no shared record of the amount, data can get overwritten, and there’s the simple logistics of having to email each rep or partner their payout amounts. With P2 you have a reliable way to distribute your residual data to your agents and partners. They login to a portal and can see their current residuals and their past residuals. You can expose high-level summary data only or allow users to drill down into more detail. ISO office managers can see their residual payouts as well as the payouts of their down line agents. Agents can drill down into merchant level residual details.