Overview
Dynamic Splits & Buy Rates automatically adjust a user’s residual split or buy rate based on the performance of their merchant portfolio. Instead of assigning one fixed rate, admins can create performance tiers based on processing volume or transaction count. Merchant Central uses data from published residual reports to determine which tier applies.
- Dynamic Splits: Automatically assigns a Gross or Net residual split percentage based on performance. For example, an agent could receive a 10% split below a certain processing volume, 15% after reaching the next tier, and 20% above a higher threshold.
- Dynamic Buy Rates: Automatically assigns different authorization and volume buy rates based on the same type of performance thresholds. This can be used when a partner’s underlying cost or compensation arrangement changes as their portfolio grows.
Admins define the metric, measurement period, calculation method (average or total), and the thresholds for each tier, then assign the configuration to the appropriate users with an effective date.
Merchant Central evaluates the user’s portfolio data and applies the qualifying split or buy rate to their residual calculations. Dynamic values can also be calculated for previously published residual reports when needed.
Navigating to Dynamic Splits & Buy Rates
To open the Dynamic Splits page, navigate to: Manage → Residuals → Dynamic Splits.
How Dynamic Splits & Buy Rates Work
Both Dynamic Splits and Dynamic Buy Rates use portfolio statistics derived from published residual report data. When configuring a dynamic rule, you define:
- Metric (Column): Volume or Transaction
- Date Range: A predefined window (for example, Last Calendar Quarter)
- Operation: Average or Sum
- Threshold Tiers: One or more tiers that determine which value applies
Dynamic Splits
Dynamic Splits assign a split percentage (Gross or Net) based on where a user’s portfolio performance falls within your configured thresholds.
Example Tier Structure:
- Base Tier: Sales volume under $300,000 = 10% split
- Tier 2: Sales volume between $300,000 and $500,000 = 15% split
- Tier 3: Sales volume above $500,000 = 20% split
Dynamic Buy Rates
Dynamic Buy Rates define tiered buy rates for partners. Each tier includes:
- Auth Rate
- Volume Rate
Example Tier Structure:
- Base Tier: Interchange Plus Buy Rate = 0.20% + $0.20
- Tier 2: 0.18% + $0.18 if total volume > $5M
- Tier 3: 0.17% + $0.17 if total volume > $10M
Each partner can define unique thresholds and buy rates. The qualifying window is determined by the selected Date Range.
How to Create a Dynamic Split
- From the Dynamic Splits page, click Add New Dynamic Split & Buy Rate to open the configuration window.
- Select Dynamic Split from the first dropdown.
- Complete the configuration fields:
- Name: The display name used in reporting.
- Column: Select Volume or Transaction.
- Volume: Total sales amount (TPV) across the portfolio in published residual reports.
- Transaction: Total number of transactions across the portfolio in published residual reports.
- Date Range: Select a predefined date range (e.g., Last Calendar Quarter, Last Three Months).
- Operation: Select Average or Sum.
- Define threshold tiers by entering the performance range and corresponding split percentage (Net or Gross). Click Add Rule to create additional tiers.
- Click Save. The new split will appear in the table, where it can be edited or deleted from the Actions column.
Example Split Tiers
- Base Tier: 10% split for volume under $300,000
- Tier 2: 15% split for volume between $300,000 and $500,000
- Tier 3: 20% split for volume over $500,000
How to Create a Dynamic Buy Rate
- From the Dynamic Splits page, click Add New Dynamic Split & Buy Rate.
- Select Dynamic Buy Rate from the dropdown.
- Complete the configuration fields (Name, Column, Date Range, and Operation), following the same definitions described above.
- Enter the threshold tiers with corresponding Auth Rate and Volume Rate. Click Add Rule to add additional tiers.
- Click Save. The buy rate will appear in the table and can be edited or deleted from the Actions column.
Example Buy Rate Tiers
- Base Tier: 0.20% + $0.20
- Tier 2: 0.18% + $0.18 if total volume > $5M
- Tier 3: 0.17% + $0.17 if total volume > $10M
How to Manage Dynamic Buy Rate Fee Types
Admins can create and manage custom fee types used in Dynamic Buy Rate configurations.
- From the Dynamic Splits & Buy Rates page, click Manage Buy Rate Fee Types.
- Click Add Fee Type to create a new fee type.
- Enter a Label and select the applicable Unit. The Buy Rate Key is generated automatically.
- Use the available actions to edit, deactivate, or reactivate a fee type.
- Drag and drop fee types to change the order in which they appear in Dynamic Buy Rate configurations.
New active fee types automatically become available when configuring Dynamic Buy Rates. Deactivated fee types are hidden from new configurations but remain available to existing residual rules that already use them.
☝️ System fee types, such as Auth Rate and Volume Rate, cannot be renamed, but they can be deactivated or reactivated. At least one fee type must remain active.
How to Assign Dynamic Splits & Buy Rates
To assign a Dynamic Split or Buy Rate, click the gear icon in the Actions column for the desired configuration.
In the configuration window:
- Open the Assign Users tab.
- Select the applicable users.
- Select the effective month and year.
- Click Apply.
You can also assign a Dynamic Split or Buy Rate directly from the user settings page.
How to View Assignments & History
Dynamic Split and Buy Rate assignments, including assignment history, can be viewed on the user settings page under the Merchant Access Permissions section.
How to Calculate Dynamic Values for a Past Residuals Report
To apply a Dynamic Split or Buy Rate configuration to a previously published residuals report:
- Click Calculate Dynamic Splits in the top-right corner.
- Select the configuration and users.
- Select the report month and year.
- Click Calculate.