Revenue Split

Also called rev share, residual split, profit split

How the processor and the salesperson divide the money made on your account. It shapes who is motivated to keep you happy, and for how long.

What it is

A revenue split is the percentage of net account revenue paid to the agent or ISO who sold and services your account. Published ranges for 2026: a W-2 sales rep at a direct acquirer gets 10-30%, a 1099 independent agent gets 50-70%, a registered ISO gets 70-80%+, and a wholesale ISO with its own BIN operates at 80-90%+ on a buy-rate basis. The split rises with how much cost and risk the seller absorbs. The subtlety that matters is gross versus net. A 50% gross split on a 50 basis point markup pays the agent 25 basis points. A 90% net split can pay less, if the processor deducts costs before computing net. A 70% net split on a 40 basis point spread yields 28 basis points, not the 70% the headline implies. Practitioners are explicit that you should model in basis points retained per dollar of volume, never in the advertised percentage. Why a merchant should care about any of this: the split determines whether the person who sold you the account is still economically attached to it. A well-paid agent with a portfolio has a durable reason to answer your call in year four. A W-2 rep on a 20% split and a monthly quota has a reason to sell you and move on. Neither is a character judgment. It is compensation design.

Why it matters to your business

You will never see the split on your account, but you feel it. Ask your rep two questions: do you get paid on this account for as long as I process, and does your compensation depend on signing new merchants this month? The answers predict whether you will have a human being to call in 2029. Practically: if your entire relationship is a phone tree at a processor's national service center, you are on a compensation structure that assumed you would churn. Price that in when comparing an 'identical rate' from a local shop that answers.

Where it gets contested

Splits are where the ISO channel's incentive problems live. Some programs require 12-24 months of active selling before residuals vest, and some claw back past residuals if new production drops below a threshold. That structure pushes agents to keep hunting rather than servicing - it makes your account most valuable to them on the day it is signed and least valuable after. Elavon is the notable counterexample, publicly stating its ISO program carries 'no exclusivity or minimum revenue commitments.' Nearly every other program's terms are unpublished, which is itself a signal. The merchant-facing consequence: high-churn compensation produces high-churn service. Traditional terminal-based portfolios run 15-25% annual attrition; software-integrated portfolios run 5-10%. Merchants leave when nobody calls them. A structure that pays agents to hunt rather than farm guarantees that nobody calls. There is also a darker corner. When an ISO sells its portfolio, buyers sometimes purchase 100% of merchant profits and simply refuse to honor agent commissions - and get away with it because individual agents cannot afford the litigation. When that happens, your service relationship evaporates along with the agent's paycheck, and you find out via a phone number that stops working.

How to check it yourself

Ask directly: 'Are you a W-2 employee of the processor, a 1099 agent, or a registered ISO? Do you earn residuals on my account every month, or a one-time commission?' You are not entitled to the percentage, but you are entitled to know the structure - and a straight answer is itself the qualification test.

Receipts

Claims above that are checkable, with where to check them. Published so you do not have to take anyone's word for it.

Residual splits run 10-30% W-2 rep, 50-70% 1099 agent, 70-80%+ registered ISO, 80-90%+ wholesale ISO
unisonpayment.com ↗
A 50% gross split on a 50 bps markup equals 25 bps; a 70% net split on a 40 bps spread yields 28 bps, not the headline
strictlyzero.com ↗
Some programs require 12-24 months of active selling before residuals vest and claw back if production drops
unisonpayment.com ↗
Elavon's ISO program states no exclusivity or minimum revenue commitments
elavon.com ↗