MerchantBridge Advisors / Portfolio economics
ISO Residual Calculator
Buy rates are only part of the economics. The revenue split, fee base and servicing costs matter too.
Monthly merchant activity
Same cohort, pricing and activity in both arrangementsSettled purchase volume for the same monthly period.
Settled purchases for the same monthly period.
Active merchants for the same monthly period.
Collected merchant fees less interchange/network pass-throughs, before the partner costs below.
Commercial terms
Monthly unless stated otherwiseApplied to settled purchase volume. 1 basis point (bp) = 0.01%.
For purchase-based charges only; additional authorization, refund or other event fees belong in other partner costs.
Cost per active merchant, in U.S. dollars per month.
Additional charges deducted before the split. Do not count a cost twice.
A floor on the combined partner costs above, not an extra charge or a per-merchant minimum. Zero means no floor.
Post-split program deductions, in U.S. dollars per month.
Your incremental operating costs, separate from partner fees and common overhead.
The calculation, line by line
Fees shown as positive costs, deducted at the stated stage| Calculation | Current | Alternative |
|---|---|---|
| Revenue after pass-throughs | $6,000.00 | $6,000.00 |
| Volume-based partner cost | $1,000.00 | $600.00 |
| Per-purchase partner cost | $400.00 | $1,200.00 |
| Per-merchant partner cost | $100.00 | $500.00 |
| Other partner costs | $0.00 | $0.00 |
| Minimum top-up | $0.00 | $0.00 |
| Total partner buy costs | $1,500.00 | $2,300.00 |
| Revenue remaining before split | $4,500.00 | $3,700.00 |
| ISO share earned | $3,600.00 | $3,330.00 |
| Post-split deductions | $100.00 | $150.00 |
| Net residual before withholding | $3,500.00 | $3,180.00 |
| Your servicing costs | $200.00 | $200.00 |
| Contribution before overhead & tax | $3,300.00 | $2,980.00 |
Average purchase: $100.00. Based on the same settled purchase volume and count.
What this comparison assumes
- Merchant fees have been collected. Interchange and network pass-through costs are already removed from the entered revenue.
- Partner buy costs are deducted before the ISO split. The monthly minimum is a floor on those combined costs, not an additional charge. Post-split deductions and your servicing costs follow.
- Each monthly fee line and the earned share are rounded half-up to cents. Actual agreements may use different billing events, minimums, tiers, split bases and rounding rules.
Losses, reserves, withholdings, transition costs, tax, common overhead and unentered fees are excluded. Negative pools require contract review; a negative calculated residual does not establish a debt. Neither result determines merchant eligibility, transfer feasibility or a payment partner's offer.
MerchantBridge provides payments advisory and referral support. Approval, pricing, compensation and account terms are case-specific. Savings or increased profit are not guaranteed.
Read the buy-rate and residual guide