Merchant services agents and ISOs usually receive “buy rates” from a processor, the processor’s cost to them, and set merchant pricing above those…
THE SHORT ANSWER
Merchant services agents and ISOs usually receive “buy rates” from a processor, the processor’s cost to them, and set merchant pricing above those rates. Their compensation is typically a share of the residual: the difference between what the merchant pays and the buy rate, paid monthly for as long as the account stays active. Transparent pricing, usually interchange-plus with a clear markup, builds trust and keeps merchants longer.
Updated · Waytrix Pay editorial team
TOPIC
An agent agreement normally includes a pricing schedule, often called schedule A, listing the agent’s cost for each fee: the markup over interchange, per-transaction fees, monthly fees, and equipment costs. Anything the agent charges above those costs generates residual income, which is then split between the agent and the ISO or processor according to the agreement.
Agents typically offer merchants one of these models:
Merchants increasingly compare effective rates and read statements closely. Disclose every fee in writing, avoid hidden markups and junk fees, explain equipment leases fully, and price so the merchant can see the value. Accounts priced fairly tend to stay longer, which matters because residuals depend on retention.
Waytrix Pay works with referral partners, agents, and ISOs who share a merchant-first approach. Any compensation is defined in a written partner agreement. Tell us about the merchants you serve on the partners page.
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