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  1. #1

    Compensation standards for iso reps??

    What is the typical ISO Rep compensation structure?

    Are they subject to clawbacks like brokers?

    Do they get a % of the fees? The higher they charge the more they take home?

  2. #2
    big a paper shops - reps get paid a very small % but they usually do huge volume.
    smaller shops - prob make 1.5-3% on deals (can be guaranteed points or based on O fee)
    most places wont clawback internal - there is enough shops that need reps vs the other way around that the reps can ask for no clawback

    also bad for morale if trying to run a good shop when you claw back iso rep

  3. #3
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    Quote Originally Posted by MerchnatFundingSource View Post
    big a paper shops - reps get paid a very small % but they usually do huge volume.
    smaller shops - prob make 1.5-3% on deals (can be guaranteed points or based on O fee)
    most places wont clawback internal - there is enough shops that need reps vs the other way around that the reps can ask for no clawback

    also bad for morale if trying to run a good shop when you claw back iso rep
    This is accurate. I worked for a funder that paid 1 point up front and another point in the back end to eliminate clawbacks. When I worked at WBL, they paid a percentage of the revenue that would be generated from the deal, so commission was heavily affected by buy rate.

  4. #4
    how can iso rep be clawed back?
    they dont uw the deal - why should they be affected by the uw performance

  5. #5
    Senior Member Reputation points: 119752 BR-Nightmare's Avatar
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    Quote Originally Posted by mcafunders View Post
    how can iso rep be clawed back?
    they dont uw the deal - why should they be affected by the uw performance
    Wait, why would the blame be put on the UW?

    What if everything checks out on the deal and he simply goes ghost? That's the UW fault?
    The Brokers Nightmare
    I don't want peace, I want problems, ALWAYS!
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  6. #6
    Quote Originally Posted by BR-Nightmare View Post
    Wait, why would the blame be put on the UW?

    What if everything checks out on the deal and he simply goes ghost? That's the UW fault?
    so then no one should get CB - not even the broker

  7. #7
    Senior Member Reputation points: 119752 BR-Nightmare's Avatar
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    Clawbacks suck, I get it.

    Out of 10 defaults, around 3-6 are blaming deceptive broker practices. Ranging from PSF's to promise of a LOC, or even promising a triple funding scenario that failed and then disappearing in the Merchant. (Granted, some of those resume payments or at least work with the funders) The rest are either shady Merchants or Merchants that bit off more than they can chew.

    What should the funder do in the case that a deceptive broker caused the default? I'm clawbackin' yo ass.
    The Brokers Nightmare
    I don't want peace, I want problems, ALWAYS!
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  8. #8
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    most of my friends who are directors or iso managers are making $150-200k a year in income. they not only bring in the isos (top isos in this industry), but, they fund millions per month. they get a salary + % on new and a % on renewals and no, clawbacks for a w-2 is not the norm. a forward facing position that has lots of contacts and knows this business and how to manage isos is invaluable. now if your a start up funder or part broker part funder , you prob cant afford what the big boys pay isos managers but good luck finding a really good experienced iso manager on a shoestring budget

  9. #9
    How much is typically charged if I want to use someone else's backend for my own book? I bring the money and deals, everything else is theirs (banks, crm, debits, docs, etc...)

  10. #10
    Quote Originally Posted by dollarbillz View Post
    How much is typically charged if I want to use someone else's backend for my own book? I bring the money and deals, everything else is theirs (banks, crm, debits, docs, etc...)
    1-2% max

  11. #11
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    Quote Originally Posted by dollarbillz View Post
    How much is typically charged if I want to use someone else's backend for my own book? I bring the money and deals, everything else is theirs (banks, crm, debits, docs, etc...)
    You talking about a syndication platform or just a large iso to go through on brokering ?

  12. #12
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    How many subs on average should a good rep bring in on a monthly basis to earn these numbers ?
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  13. #13
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    Quote Originally Posted by dollarbillz View Post
    What is the typical ISO Rep compensation structure?

    Are they subject to clawbacks like brokers?

    Do they get a % of the fees? The higher they charge the more they take home?
    Is the below a valid answer?

    The compensation structure for ISO representatives (Independent Sales Organizations) can vary widely depending on the organization and specific agreement between the ISO and its merchants.

    Typically, ISOs are paid a percentage of the transaction fees charged to merchants for processing credit card transactions. The exact percentage can range from a few basis points to several percentage points, with higher percentages often being paid for transactions with higher fees.

    In terms of clawbacks, ISO representatives may be subject to similar terms as brokers, including clawbacks of compensation for chargebacks or other violations of their agreement with the acquiring bank.

    In conclusion, the compensation for ISO representatives is usually a percentage of the transaction fees charged to merchants and can vary widely, with higher fees potentially resulting in higher compensation. Additionally, they may also be subject to clawbacks in certain situations.

  14. #14
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    Quote Originally Posted by mcafunders View Post
    how can iso rep be clawed back?
    they dont uw the deal - why should they be affected by the uw performance
    Does the answer below check out?

    Clawbacks for ISO representatives typically occur if there are chargebacks or other violations of their agreement with the acquiring bank. The acquiring bank may require the ISO to refund some or all of the compensation they received for a specific transaction if the transaction is later found to be fraudulent or violates the terms of the agreement.

    The reasoning behind clawbacks for ISO representatives is that the acquiring bank may bear financial liability for chargebacks or other violations, and the ISO is seen as being responsible for ensuring the transactions they facilitate are in compliance with the agreement. The clawback serves as a way for the acquiring bank to recover some of its costs in such cases.

    It is important for ISO representatives to be aware of and understand the terms of their agreement with the acquiring bank, including any provisions for clawbacks, in order to minimize their exposure to financial risk.

  15. #15
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    Quote Originally Posted by dollarbillz View Post
    How much is typically charged if I want to use someone else's backend for my own book? I bring the money and deals, everything else is theirs (banks, crm, debits, docs, etc...)
    How is the quality of the below answer?

    The cost of using someone else's backend for your own book can vary widely depending on several factors, including the size of your book of business, the complexity of the services provided, and the terms of the agreement.

    Typically, a fee is charged as a percentage of the transaction volume processed through the backend. This fee can range from a few basis points to several percentage points and can be based on a monthly or annual basis. Some providers may also charge additional fees for specific services, such as chargeback handling or customer support.

    It is important to carefully evaluate the terms of the agreement and the services provided to ensure you are getting a fair price and that the backend provider is able to meet your needs. It may also be useful to compare the costs and terms of several providers to find the best fit for your business.

  16. #16
    Seems like someone discovered chatgpt...
    Mark Goldberg

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  17. #17
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    Quote Originally Posted by Mark Goldberg View Post
    Seems like someone discovered chatgpt...
    I 've been laying around with it since the release in November. I now try to ask it any question that I run across, just so I can get a feel of exactly how awesome this is... I have discovered that it can not do math well, even thought it gives an answer, as well as an explanation that sounds like it makes since. So I find that, even though the answers sound great, you need to vet them.. So I was wondering what was the quality of ChatGTP's answers regarding those questions posted.

  18. #18
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    ISO's are clawed back typically if deals default within 30 days. Some try and stretch that to 60-90 days. Funder's are paying up to 12 points, sometimes higher, sometimes lower all upfront. This is totally different than how an employee is paid to manage ISOs .

  19. #19
    Quote Originally Posted by Winning View Post
    I 've been laying around with it since the release in November. I now try to ask it any question that I run across, just so I can get a feel of exactly how awesome this is... I have discovered that it can not do math well, even thought it gives an answer, as well as an explanation that sounds like it makes since. So I find that, even though the answers sound great, you need to vet them.. So I was wondering what was the quality of ChatGTP's answers regarding those questions posted.
    Not great, kinda missed the point.
    Mark Goldberg

    Blade Funding

    347.281.2223

    Mark@bladefunding.com

  20. #20
    Quote Originally Posted by Michael I View Post
    You talking about a syndication platform or just a large iso to go through on brokering ?
    Not really. I’m talking about using a funders contracts, debits, and crm to fund. I would put up the money and bring the isos. Like an umbrella of them

  21. #21
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    Quote Originally Posted by dollarbillz View Post
    Not really. I’m talking about using a funders contracts, debits, and crm to fund. I would put up the money and bring the isos. Like an umbrella of them
    pm me your info . ill give you some rundowns

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