Glossary · Pricing and math
Points
Points are ISO commission expressed as a percent of the funded amount: base points paid by the funder plus upsell points from selling above the buy rate.
Also called broker points, upsell points, ISO points, commission points
One point is 1% of the advance. Funders pay a base commission (for example 2 points) and add upsell points when the ISO sells above the buy rate. Total commission on MCA deals is commonly somewhere in the 6 to 12 point range including upsell, though it varies by funder and paper.
Check the commission basis in the ISO agreement: most funders pay on the advance, some on net funding or another base. The basis changes the dollar figure.
Formula
upsell points = (sell rate − buy rate) × 100 total commission % = base points + upsell points commission $ = commission basis × total commission %
Example
2 base points plus 7 upsell points on a $50,000 advance: 9% of $50,000 = $4,500.
Track it on every deal
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Related
- FeatureCommissions and reconciliationTrack expected versus received commissions per funded deal, split them with reps and partners, handle clawbacks, and reconcile lender commission statements line by line.Read
- Free toolISO commission calculatorCalculate an ISO's commission on a merchant cash advance: base points, upsell from the buy and sell rate, commission basis, rep and partner splits and clawback exposure.Read
- GlossaryBuy rateThe buy rate is the lowest factor a funder will accept on a deal from an ISO. The ISO can sell above it, and the gap becomes upsell commission.Read
- GlossarySell rateThe sell rate is the factor rate the merchant actually signs, set by the ISO at or above the funder's buy rate. It decides the payback and the ISO's upsell.Read
- GlossaryCommission splitA commission split divides the commission a funder pays on a deal between the house, the closer and any sub-ISO or referral partner, by agreed percentages.Read
- GlossaryClawbackA clawback is a funder taking back an ISO's commission because the merchant defaulted or stopped paying within a set window after funding, often 30 to 90 days.Read
- GlossaryISO agreementAn ISO agreement is the contract between a broker and a funder that sets commission rates, clawbacks, submission rules and restrictions before any deal is sent.Read