Skip to main content
#
Shaw Merchant Group

Need Assistance?

If you have questions, would like more information or if you are ready to get started please click the button below to leave your name and contact information.

Wednesday, 04 January 2023
Find merchant services sale rep careers, credit card processing representative. Get into merchant services and payment processing sales.
Tuesday, 03 January 2023
Become merchant sales agent in the merchant services industry. Start selling merchant accounts and credit card processing services and POS equipment.
Tuesday, 29 September 2020
Become a merchant cash advance agent and start selling merchant cash advance. Join the best merchant cash advance business opportunity.
Sunday, 31 May 2020
Refer merchant cash advances to our merchant cash advance company and get commissions for selling merchant cash advances.
Friday, 13 January 2023
learn more about how to become a payment facilitator, join NAB and become the best payment facilitator company. Partner up with a payment facilitator,
Friday, 20 January 2023
merchant portfolios for sale, merchant services residual buyout, merchant account portfolio buyout, merchant portfolio valuation, merchant portfolio a
Monday, 23 January 2023
White-Label Payment Service Providers and how products like white label payment gateways, mobile payment processing, build your own ISO brand.
Monday, 23 January 2023
If you are looking for the best credit card processing and merchant services business opportunity its here with North American Bancard Agent Program.
Monday, 23 January 2023
Become a payment processor with North American Bancard ISO Program. Payment processing agents or credit card processor ISOs has huge commissions
Monday, 23 January 2023
Become a merchant services agent, merchant account reseller, selling merchant services, merchant account portfolio buyout, Sell merchant account portf
Thursday, 28 May 2020
How do I get leads for merchant cash advance. Generate merchant cash advance leads
Saturday, 28 January 2023
Become a North American Bancard Agent or North American Bancard ISO. Each North American Bancard Partner Program is rated the top best.
Monday, 23 January 2023
Top 5 Credit Card Processing Agent Programs, Credit Card Processing ISO Programs, Merchant Services Agent Programs, ISO Sales Partners, Merchant ISO
Sunday, 22 January 2023
Learn key tips on selling credit card processing, how to sell merchant services, how to sell payment processing, sell credit card processing
Friday, 20 January 2023
Start you own merchant services company. With starting a credit card processing company with the payment processing business model.
Thursday, 19 January 2023
Todays merchant services market is quickly shifting to credit card processing sales over the phone. Learn how to sell merchant accounts over the phone
Wednesday, 18 January 2023
Learn what it takes to become an ISO for merchant services. With becoming a registered ISO agent come ISO agent programs that pay huge.

Need Assistance?

If you have questions, would like more information or if you are ready to get started please click the button below to leave your name and contact information.

How Much Can You Make Selling Merchant Services? | Schedule A Training
Thursday, December 31 2020

When you're new to selling merchant services, lots of things can get confusing, but one of the most confusing things that you will have to deal with is understanding all of the statements that affect your residuals, and especially the fee schedules that determine your costs. Many times, this can be so cryptic that your partner company may actually spend some time and effort explaining the fees to you. At the very least, they should provide you with some kind of written material that demystifies things. Even still, things might not always be totally clear.

In order for you to have a better idea of your Schedule A as a new Merchant Services Sales Agent, let's break down the various sections so that you're not completely in the dark:

Authorization and Capture / Settlement Per Item Fee - A key part of your Schedule A, you'll want to pay close attention to this section specifically. These fees are associated with the front-end platform. Should the processor that you work with offer more than one front-end, this section might look a bit different, as they may break everything down further and have different costs listed for different front-ends.

First and foremost, you need to have your Schedule A on hand, so make sure that you ask your payment processor or merchant services provider for a copy. After that, you're going to have to figure out whether these three fees are depicted as one entire line or if they are broken down. Depending on your provider, they may be expressed differently. For example, you might find an “Authorization” line with a fee listed as $0.02, and that might seem uncommonly generous, but then there will be a “Capture” line that lists a fee of $0.07, and then a “Settlement” fee of $0.01, bringing the fees up to a total of $0.10. Other times, things will be combined already; for another example, you might see a line that reads “Authorize and Capture” with a fee of $0.06, and below that a “Settlement” fee of $0.02, making the total front-end transaction cost $0.08.

Since this is kind of complicated, you usually won't bother to break things down for merchants. As you explain things to them, just tell them about the total transaction fee and don't have them worry about the details. For you personally, though, these broken down fees will mean a lot more because they can certainly affect your residuals. To illustrate how your fees can make a huge difference in your profit margin, let's say you have a portfolio of 100 merchants and, on average, they perform 500 transactions per month per merchant. Now, let's say that you charge $0.10 for your transaction fee. With 50,000 transactions, that means you are grossing $5,000 in revenue every month. How much of that will you keep? Well, if you're being charged $0.05 total per item by your processor, then your margins are 50%, and you take home $2,500. However, if your fees per item are $0.08, then you're only making $1,000 per month in profit. That's quite a difference. As you can see, your profit margins will depend largely on your fees, so you need to stay on top of them.

Settlement Fees and Batch Fees - If you think that your Schedule A gets less confusing after all that authorization and capture stuff, then you're in for an unpleasant surprise. You might find that in addition to a settlement fee per item, there is also a fee per “batch.” The point of this fee may not be immediately obvious, but it's basically like this:

For instance, maybe one of your merchants performs 100 transactions via credit card one day. You would be charged a settlement fee that applies “per item” for each of these individual transactions. When your merchant is closing up for the day, however, and they settle by sending the batch of daily transactions to the processor, then there will also be a “batch fee.”

More than likely, your processor will have this fee on the Schedule A. Almost all of them do, so be sure to look at this section for how much you are being charged and pass the cost onto your merchant accordingly. As another example, your processor might charge $0.07 per batch (your cost), and you might decide to charge your merchant $0.25 per batch (your revenue). In this case, you're making $0.18 in profit whenever that terminal is settled at the end of the day.

Bank Identification Number (BIN) Sponsorship - You might find this section expressed a few different ways. All this really means is that your processor is keeping a tiny percentage of the profits (measured usually in a few basis points) before they give you your share. In case you were wondering what a basis point is, it's just 1% of 1%, or 1/100th of 1/100th (1%) if you want to break it down. So for instance, let's say your merchant processes $20,000. If the BIN sponsorship fee is 5 basis points, then your processor is keeping $10.00 before giving you your share of the profit.

Now, there are definitely more items on your Schedule A than just these, but they're the key lines that you should keep a close eye on, and they're the basic items that you will find with most processors. For information about other sections that may appear on your Schedule A, you should ask your processor for an explanation. In essence, these three line items are important because they are what is going to determine how much you charge your merchant. As with any business, you're going to have to deal with costs compared to your revenue, which is what determines profit—and the fees are basically your cost. You're going to use your Schedule A as a detailed list of your costs, and from there you can come up with a fair and profitable fee schedule for your merchants. That difference between revenue (the fees your merchant pays) and cost (the fees your processor charges) every month is what will give you your merchant residuals.

Download PDF: How your Schedule A works | How Much Money Can You Make Selling Merchant Services

Need Assistance?

If you have questions, would like more information or if you are ready to get started please click the button below to leave your name and contact information.

Featured Video

Featured Video

Need Assistance?

If you have questions, would like more information or if you are ready to get started please click the button below to leave your name and contact information.

Monday, 23 January 2023
Become a merchant services provider and offer credit card processing, merchant services and other payment processing services to merchant that want to
Saturday, 04 March 2023
As part of our Merchant Services Sales Partner Program our Credit Card Processing Agents can Sell Merchant Accounts. Join our Sales Partner Programs
Tuesday, 03 January 2023
Join our Merchant Account Reseller Program where you get huge bonuses for selling credit card processing and merchant services as a reseller.
Tuesday, 29 September 2020
Become a merchant cash advance agent and start selling merchant cash advance deals today. Our merchant cash advance ISO program is the best in the cou
Wednesday, 03 June 2020
Selling merchant cash advances are lucrative and cash help small businesses by becoming a merchant cash advance agent or ISO. Join our program.
Saturday, 10 December 2022
Looking for the best Merchant Account Affiliate Program. Find the top Credit Card Processing Affiliate Programs with North American Bancard.
Monday, 29 June 2020
Build lifelong relationships with our Cash Discount Agent Program. Agents and ISOs looking for the best cash discount program to sell to merchants.
Tuesday, 09 June 2020
Become a Cash Discount Program ISO with North American Bancard. Sell Cash Discounting to merchants and offer a cash discount reward program.
Wednesday, 04 January 2023
Selling merchant accounts as a successful merchant services sales rep is rewarding. Credit card processing sales representatives make large income.
Tuesday, 03 January 2023
Learn the truth about merchant services and credit card processing sales and how you can become a merchant account sales representative.
Tuesday, 14 December 2021
Become a merchant services consultant, merchant account consulting, credit card processing consulting, merchant services consulting, credit card proce
Monday, 16 January 2023
Selling Merchant Account and Selling Credit Card Processing is one of the most lucrative sales jobs. Become a Merchant Services Sales Agent.
Friday, 02 December 2022
Become a merchant processing sales agent with the best merchant services ISO program. Learn how payment processing sales can make large commissions
Saturday, 14 January 2023
Topics include high risk merchant processors, high risk credit card processors, high risk merchant services, high risk merchant accounts and more

    ©2023 Shaw Merchant Group LLC 

    Merchant related products and services are referred to North American Bancard. North American Bancard is a registered ISO of Wells Fargo Bank N.A., Walnut Creek CA, of BMO Harris N.A., Chicage, IL and The Bancorp, Philadelphia, PA.