Managing residuals is one of the most important aspects of maintaining ISO growth and maximizing long-term portfolio value. Unfortunately for many ISOs, the data they have access to on their own residuals is dense, jumbled, and poorly organized. Because of that, ISOs run into common problems when trying to use monthly residuals reports either as part of their wider financial reporting or for specific tasks like determining how much independent agents are due. However, as complex and problematic as traditional reporting can be, today’s ISOs can remove the mystery and the wasted time and headaches, thanks to advanced customer resource management systems, like IRIS CRM.  

 

Issue: Residuals Reporting is Complex and Time-Consuming

ISOs don’t just work with one payment processor. To maximize their earnings and the options available to their merchants, it isn’t uncommon for ISOs to work with half a dozen payment processors or more. But, with each additional processor an ISO partners with, the complexity of their residuals reporting increases. 

Unfortunately, processors don’t design their reports with their competitors in mind. As a result, when residuals numbers drop each month, ISOs receive a report from each of their processing partners, each with a different format from the others. To understand their total earnings, the key data points from each report need to be manually extracted and combined – a potentially major undertaking. But that still only provides gross residuals. To calculate net residuals, agent splits need to be taken into account, and that can differ on a merchant-by-merchant basis, adding even more complexity. 

How IRIS CRM Reduces Residual Complexity

IRIS CRM’s reporting dashboard eliminates the complexity involved with residuals by letting the system combine processor reports instantly and provide ISOs with the data they need, in an easy-to-digest format. Rather than pouring through disparate monthly residuals reports, sifting through the noise, and manually crunching the numbers, IRIS CRM users can just open up the residuals reporting dashboard and immediately see gross and net residuals along with a number of KPIs on a portfolio-wide, processor-by-processor, and merchant-level basis. 

IRIS CRM’s residuals reporting dashboard is fully configurable and easily searchable, and provides ISO with data covering:

  • Monthly volume growth in dollars and as a percentage
  • Monthly revenue growth in dollars and as a percentage
  • Average profit per merchant in dollars, BPS and as a percentage
  • Monthly BPS margin growth as a percentage
  • YTD profit in dollars and BPS. Lifetime profit in dollars and BPS
  • Processing-merchants analytics
  • Financial key indicators
  • Top merchants by volume and net income
  • Merchant distribution by geographic states
  • Industry analytics

And much more, all in a matter of a few clicks. ISO managers can instantly find the information they need to make better decisions, create more accurate forecasts, and maximize growth, with none of the complexity of traditional residuals reporting. The result is more accurate, more effective residuals management and an enormous amount of time saved each month. 

 

Issue: Agents Have to Wait Too Long for Payouts

The complex and time-consuming nature of traditional residuals calculations causes all kinds of problems for ISO managers, but it also impacts independent agents in a negative way by delaying their payments. Agents are on the frontline of merchant recruiting, and are some of an ISO’s most important employees. Each agent earns their own residuals on the transactions processed by merchants they’ve recruited. To ensure agents are paid out accurately, ISOs have to apply each agent’s splits to each month’s residuals. But with potentially dozens of agents reselling services for half a dozen or more payment processors, figuring out how much each agent is due and getting the money out to them is no small task, and can take well over a week. 

 

How IRIS CRM Speeds up Residual Payouts

When merchants are boarded through IRIS CRM, their splits are entered into the account from the start. Each month, when residuals reports drop and IRIS CRM automatically calculates everything, the system also applies the splits for each agent. Rather than having to painstakingly work out each agent’s commissions manually, IRIS CRM users get an instantaneous breakdown, accurate down to the penny, of what each agent is due. 

Better still, to make the payouts, users need only navigate over to the billing and payments area of the CRM and pay each agent in a matter of a few clicks using the system’s built-in ACH integration. With IRIS CRM, instead of agent payouts taking countless hours to calculate and a week or more to issue, the entire process can be handled as early as the very same day that residuals numbers drop. 

On top of saving time for ISO managers, by paying out independent agents faster, stronger relationships can be built leading to more loyal, motivated team members. Faster payouts can also be a big draw when it comes to recruiting the most talented independent agents in the space – an important part of maximizing growth and portfolio value. 

 

To find out more about how a full-featured payments CRM can address or eliminate some of the most common problems with residuals reporting and management, reach out to a member of the team or schedule a free guided demonstration of IRIS CRM today.