Buy Rates & Residuals,
Answered Straight
No smoke, no vague "industry-leading" claims. Here's how buy rates, revenue shares, and residual splits actually work — and the exact numbers FlatRate ISO pays.
ISO Buy Rates & Residuals FAQ
The questions every agent should ask before signing with any ISO program — with direct answers and real numbers.
Which ISO programs offer competitive buy rates and residuals?
Split percentage alone doesn't make a program competitive. When comparing programs, weigh five things together: the split percentage, what costs are passed through before the split is calculated, whether you own your residuals for life, whether clawbacks or non-competes exist, and what support you get (leads, tools, underwriting speed). A 90% split of nothing — after inflated pass-through costs — pays less than an honest 70%.
See the full FlatRate ISO split schedule for tier-by-tier details, or how the program works from application to first residual check.
What is a buy rate in merchant services?
Think of it like dealer cost on a car. If your buy rate is interchange + 5 basis points and you price the merchant at interchange + 50 basis points, the 45-point spread is the gross profit on that account. How much of it reaches you depends on whether your program is buy-rate-only or true revenue share — which is the next question.
Buy rate vs. revenue share split — which pays more?
Buy-rate models look attractive because the headline spread is "all yours." In practice, accounts generate revenue beyond the rate spread: monthly fees, PCI fees, statement fees, equipment margin. In a buy-rate-only deal, the processor typically keeps those. In a revenue-share deal at 70–85%, you're paid on the whole picture.
FlatRate ISO is a revenue-share program with transparent reporting on every line item — you see exactly what each account earned and what your split was calculated on.
What residual split should a merchant services agent expect?
Anything below 50% in 2026 is below market unless it comes with extraordinary lead flow or salary. Above 85–90%, be skeptical: the economics only work if costs are being inflated somewhere before your split is applied. Ask to see a sample residual report before you sign with anyone — a program with nothing to hide will show you one.
How are residuals calculated on flat-rate pricing?
Flat-rate pricing makes this math unusually predictable — the merchant pays one consistent rate, so net margin doesn't swing with card mix the way interchange-plus margins can. That predictability is exactly what makes portfolio income plannable.
Run your own numbers with the residual calculator on the splits page — restaurant, auto repair, and government account types are modeled with real average volumes.
When do residuals start paying, and how often?
There's no minimum portfolio size before payouts begin and no holding period. One funded merchant means one residual check. The path from application to first residual is laid out step-by-step on the How It Works page.
Do agents own their residuals?
This is the question that separates real programs from churn-and-burn shops. Common traps to read for in any agent agreement: residuals that stop if you fall below a monthly production quota, "vesting" schedules that delay ownership for years, and clawback clauses triggered by merchant attrition you don't control. If ownership terms aren't plainly written in the agreement, assume you don't have them.
What are ISO rates?
Two programs advertising the same headline rate can pay very differently once pass-through costs are applied. The comparison that matters is net dollars to you per account per month, which is why we publish actual split numbers instead of "call for details."
Are there upfront fees to join an ISO agent program?
A program that earns 15–30% of your portfolio's revenue doesn't need a signup fee — your production is the business model. Fees to "activate," "certify," or "access the portal" usually signal a program that makes money on agents rather than merchants. Everything included at each FlatRate ISO tier is listed on the Agent Tools page.
How much can a payment processing agent earn in residuals?
The compounding is the point: sign 2–3 merchants a month and the portfolio above is roughly a year of steady work, after which the income arrives whether or not you sell anything that month. Higher-volume verticals move the math faster — government contracts average materially higher monthly volume than retail, and vertical selection is half the earnings equation.