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Commissions

Commissions

Partner commissions refer to the revenue generated from processing payments with . Merchant fees eligible for commissions, along with the partner’s buy-rates and revenue share percentage, are outlined in the Partner’s Payment Processing Agreement.

Overview

Commission reports

  • Recipients: Reports are emailed to the partner's primary commissions contact.
  • Frequency: Reports are sent before the commission payout.
  • Format: Reports are shared as Excel files.

Commission payouts

  • Schedule: Commissions are paid on the last day of the month following the month of payment processing activity. For instance, commissions for activity in April are paid on May 31.
  • Method: Commissions are sent via ACH to the bank account provided during onboarding.

Calculating commissions

The commission equation for each fee type is:

partner commission = (merchant revenue - partner cost) * partner revenue share

If the merchant's revenue is less than the partner's cost, the partner is responsible for the full difference. For instance, if the merchant's revenue is $100 and the partner's cost is $150, the partner is responsible for the $50 difference.

Key Terms

TERMDEFINITION
Partner buy-rateThe partner’s cost structure as defined in the Schedule A. Also known as a partner fee schedule.
Merchant pricingThe merchant’s cost structure as defined in the merchant application and Dashboard. Also known as a merchant fee schedule.
Partner costThe total cost incurred by the partner, calculated using their buy-rate.
Merchant revenueThe total revenue generated off the merchant, calculated using their pricing. Also known as the gross revenue.
Revenue shareThe portion of net revenue (merchant revenue minus partner cost) distributed to the partner.