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