Broker Fee / Commissions.

[KJ11]

HI Guys,

Every now & Then we get some applications for new Merchant Accounts for our High Risk Business via Brokers.
We had several occasions where we lost large sums on these accounts and the brokers claiming that they are
not responsible for that.
This made me think, what are the making of our sales.
Is it a % per sale, or a set amount per transaction.
As they would not do it if they did not benefit it one way or the other.

Curious to know what you think

 

[Spinat]

This sounds like a real issue, wonder who is able to answer the question, sorry I have no clue but follow this thread which is bookmarked.

 

[KJ11]

Hola Blue,
No worries, we just have to wait and see

 

[DGTLOTC]

Hi SB2,

Are you referring to what the mark up is from the buy rate with agents that you referred clients to for acquiring and banking ?

If you are it can vary massively it’s up to the individual agent to be honest

 

[KJ11]

HI Eur99,
I was afraid om something like that.
Now we have an average MDR of 7 to 7,5%
Transaction fee of 0,15 to 0,25
(all via broker) so still curious what their "cut" is

 

[Sols]

It depends on what you are doing, where you are, who you are, and what your volumes are like.

At 7.5%, an agent could be taking home anywhere from 0% to 6.5–7.0% depending on the underlying deal.