Residuals Overview

Overview

Merchant Central’s Residuals feature helps you import processor residual data, calculate agent commissions, review and distribute residual reports, pay agents, and analyze portfolio performance.

If you're new to Residuals, use this article as your starting point.

How Do Residuals Work

Most organizations will follow this basic process:

1. Import residual data
2. Configure how users are paid
3. Review calculations
4. Publish and share reports
5. Pay users
6. Analyze results

You do not need to use every Residuals feature. Start with the core workflow below, then explore the advanced options that match your compensation structure.

1. Import Your Residual Data

The first step is bringing your processor's monthly residual report into Merchant Central.

Upload your processor's Excel or CSV residual report to Merchant Central, map its columns to Merchant Central fields, review the imported data, and publish the report when it is ready.

You can save mappings for future imports when the processor continues using the same report format. 

More info: Importing residuals

2. Decide How Users Get Paid

Once the residual data is available, configure how Merchant Central should calculate each user's commission. For many organizations, User Splits are the best place to start.

User Splits

User Splits determine what percentage of residual income a user receives. Another commonly used term is Rev Share % but these articles will be using the term Split.

• Gross Split — Calculates the user's commission as a percentage of the ISO's residual income.
• Net Split — Calculates the user's commission by applying a Net Split % before applying the Gross Split %.

More info: Set up User Splits

Splitting Residuals Between Multiple Users

If multiple people should receive residuals from the same merchant, additional payout rules may be needed:

• Manager Splits: Use these when agents are paid from a manager's share and the manager is responsible for paying those agents. More info: Manager Splits
• Residuals Pay Order: Use Pay Order when one user's payout should reduce the amount available for the next user's calculation. More info: Residuals Pay Order

3. Customize Residual Calculations When Needed

Not every compensation plan can be handled with a simple percentage split. Merchant Central includes several optional tools for more advanced payout structures.

• Conditional Splits: Automatically apply different split percentages based on factors such as processor, merchant group, custom properties, lead source, or campaign. More info: Conditional Splits
• Dynamic Splits & Buy Rates: Automatically change a user's split or buy rate when their portfolio reaches defined volume or transaction thresholds. More info: Dynamic Splits & Buy Rates
• Residuals Templates: Use templates when an agent's payout needs additional pricing rules beyond their standard split—for example, specific transaction fees, basis-point pricing, or adjustments to income and expenses. More info: Residuals Templates
• Alternative Residual Templates: Apply different pricing rules to selected merchants without changing the user's main residual template. More info: Alternative Residual Templates

4. Add Bonuses, Deductions, or Other Adjustments

Merchant Central can also add compensation that does not come directly from the processor report. These compensations can be managed through either Line Items or Quantity-Based Payouts, depending on how the adjustment should be applied.

• Line Items: Add one-time or recurring income and expense adjustments to a residual period. Common examples include bonuses, deductions, monthly fees, and other manual adjustments. More info: Adding Line Item adjustments
• Quantity-Based Payouts: Automatically create bonuses or deductions based on how many merchants an agent activates during a defined period. More info: Quantity-Based Payouts

5. Review Residuals Before Publishing

Before making a residual report available to users, review the calculations and check for potential setup issues.

• Residuals User Exceptions: Use the User Exceptions reports to find merchants that have no active Sales Rep or Manager assigned or have a user assigned with a 0% residual split. Reviewing these exceptions before publishing can help prevent incorrect commissions. More info: Residuals User Exceptions
• Review the Residual Report: The Residuals page allows you to review overall residual totals, agent and group payouts, merchant-level calculations, user splits, line items, processor data, and merchant profitability. More info: Viewing Residuals Reports

Once everything looks correct, publish the report so permitted users can view their residual information.

6. Control What Users See

You can customize both the information displayed in residual reports and which residual periods users can access.

• Residual Report Column Configuration: Choose which columns appear for specific users, groups, or user classes and control the order of columns in reports and exports. More info: Configuring Residual Report Columns
• Residuals Visibility: Control which months of a merchant's residual history a user can access. This is especially helpful when a merchant moves from one agent to another and the previous agent should retain historical residual access without seeing future residuals. More info: Managing Residuals Visibility

7. Share and Pay Residuals

After a report is published, individual residual reports can be exported or emailed to agents.

If your organization uses Merchant Central's Paya ACH integration, you can also send residual payments directly from the Residuals Summary.

More info: Paying Residuals by ACH

8. Analyze Residual Performance

Once you have processed multiple residual periods, Merchant Central provides additional tools for analyzing your portfolio.

• Residuals Analytics: Track residual income, payouts, merchant counts, processing volume, basis points, and other performance trends. More info: Residuals Analytics
• Merchant Residuals Profitability: Review profitability for individual merchants or entire processor portfolios, including income, expenses, profit, processing volume, and BPS. More info: Viewing Merchant Residuals Profitability
• Residuals Verifier: Compare processor fees against your expected buy rates and identify potential pricing discrepancies. More info: Residuals Verifier

9. Additional Import and Calculation Tools

These features are useful for more specialized residual configurations.

• Calculated Columns: Create or transform values during the import process using Excel-like formulas. Use this when processor data needs to be reformatted or adjusted before it is mapped into Merchant Central. More info: Calculated Columns
• Special Columns: Create an alternate value from imported data that can be used in Residual Template calculations without changing the original processor data. More info: Special Columns
• Merchant Data for Non-Integrated Processors: Use transaction and volume data from residual imports to populate merchant reporting when the processor does not have a direct Merchant Central integration. More info: Importing merchant data from residual imports

10. PASO Residuals

Organizations using supported Fiserv Omaha or North PASO residual reports have additional residual configuration options.

You can import PASO reports, manage buy rates, and apply customized residual pricing rules to users or groups. You can also configure fee adjustments, pass-through income, volume-based payouts, and rules that control which income and expenses are included.

More info: PASO Residual Templates and PASO Features

Which Features Do I Need?

Here are some common examples:

☝️ Pay Order, Net Splits, and Manager Splits are mutually exclusive features and can not be used with each other.

Recommended Starting Point

If you're setting up Residuals for the first time, focus on these four areas first:

1. Confirm your processor's supported residual report
2. Import and map the residual file
3. Configure User Splits
4. Review User Exceptions and the residual report before publishing

Once the basic workflow is working, add templates, conditional rules, dynamic compensation, analytics, and other advanced features as your residual program requires.