Revenue Share is a feature that allows Facilitators to split the fee revenues generated from Referrers assessing fees to their Merchants for credit card and eCheck transactions as well as various value-added services like OmniToken or SaferPayments, enabling Facilitators to generate more revenue from their overall Referrer portfolio.
See the Revenue Share Flow Example below for a walkthrough explanation of the Revenue Share process with a diagram.
Revenue Share Flow Example
To further demonstrate how Revenue Share works in greater detail, we’ve included a flow diagram and an example to guide you through the process. See the expandable content below for more details:
Revenue Share Agreement(20%) - The Facilitator and Referrer will mutually sign a Revenue Share Agreement.
In this example, 80% goes to the Referrer & 20% goes to the Facilitator.
Revenue Share Setup(80%) - The Facilitator enables the Revenue Share feature:
Sets a 20% Revenue Share configuration.
Schedules a monthly Revenue Share Payout for the 13th of each month.
Restricts future changes to the payout schedule with the Payout Changes Lock parameter.
Turns on the Revenue Share setting under “Host” for the Referrer’s Division.
New Merchants with 3% Transaction Fees - The Referrer will board their new Merchants:
Add them to a Group with credit card or eCheck (ACH/EFT) transaction fees, or value-added service fees.
Transaction Revenue (+3% Fees) - Merchants will begin processing transactions as normal generating fee revenue for the Referrer. In this example, the amount of new transaction revenue in Month 1 was $33.333.33a. For Month 2, the amount was $16.666.67b, considering a transaction fee set at 3%. This results in +$1,000.00 in fee revenue for Month 1 and +$500.00 for Month 2 for the Referrer.
Leaving the total available balance for the Referrer at $1,500 going into Month 2.
Facilitator Revenue Share (-20%) - On the 10th day of Month 2, the Referrer’s available balance of fee revenue received by the Referrer in Month 1 ($1,000.00), is deducted for 20% of the total amount ($200.00). This amount is deducted from the Referrer’s available balance leaving their new balance at $1,300.00 for payout.
Referrer Payout - On the 13th day of Month 2, using a 100% payout schedule, the Referrer's available balance is withdrawn and deposited to the bank account on file for the Referrer.
Result: In the future, every month, the Facilitator will deduct 20% of all fee revenues from specific categories of fees on the 10th of each subsequent month. Meanwhile, the Referrer will receive payouts for these amounts on the 13th of each following month.
Note: Ensure each Referrer maintains an adequate available balance each month to cover potential revenue share payouts to their platform Facilitator for each following month before enabling this feature.
Revenue Share Setup
Before getting started, ensure that you and your Referrer have reached and signed an agreement where the percentage agreed upon for various fee types is clearly listed as “Share to Platform”.
Once both parties have signed the agreement, you may proceed to the steps below for setup using the Portal.
To start, you’ll first set the percentage of Revenue Share by Fee-Type Bucket (see each Fee-Type Bucket description below). Use the steps included in this section to complete the process:
Step 1: Access the Referrer Profile page, then click Revenue Share from the left-hand menu.
Step 2: Select the Fee-Type bucket from the tabs, then click the Set Revenue Share button.
Step 3: Set the “Payment Facilitator” percentage for the Facilitator, and the “Partner Share” for the Referrer’s amount.
Step 4: Click the “Update” button in the modal to confirm the percentages and finish the percentage setup.
Result: The Referrer’s fee revenues will now be split based on the percentages set and deducted on the 10th of each month.
Warning: Each Revenue Share percentage can only be set at the Fee-Type Bucket level. As a result, the same percentage amount will be applied to all credit card transaction fees, ACH transaction fees, and value-added service fees respectively.
2. Set the Referrer Payout Schedule
Next, you’ll need to set the Referrer’s recurring withdrawal schedule to ensure that the platform’s deduction is applied to the Referrer’s available balance before a 100% payout, to avoid negative amounts and delayed Facilitator revenue. To do this, we’ll set up the Referrer’s schedule for the 13th of each month, to allow ample time for the Facilitator’s platform deductions to occur first:
Step 1: Access the Referrer Profile page, then click Withdrawals from the left-hand menu.
Step 2: Click the Add Withdrawal Schedule button.
Step 3: Set the following parameters:
Parameter
Value
Parameter
Value
How often would you like to withdraw
Monthly
Amount
100.00
Amount Type
Percent
Start Date [Show Advanced Options]
Start on the following Month’s 13th day. (e.g. 6/13/24)
Step 4: Click the Create Withdrawal button in the modal to set the payout schedule and complete the setup process.
Result: The Referrer’s payout schedule is set to withdraw 100% of the Referrer’s available balance and deposit it to their linked bank account 3 days after the platform revenue deduction has occurred, giving ample time for any questions, concerns, or revenue returned to referrers in special partner satisfaction cases.
3. Lock Any Future Payout Schedule Changes
Then, to ensure that the Referrer does not change their set Payout Schedule for this configuration, you’ll need to enable the Payout Schedule Changes Lock parameter for their account:
Step 1: Access the Referrer Profile page, then click Parameters from the left-hand menu.
Step 2: Click the Add Parameters button in the upper right corner.
Step 3: Click the edit icon in the upper right corner, then scroll to Payout Changes Lock.
Step 4: Check the box to enable it and select Yes from the dropdown.
Step 5: Click the confirm icon in the upper right corner to complete the Payout Schedule Changes Lock parameter setup.
Result: The Referrer will now no longer be able to remove or modify this monthly payout schedule to prevent potentially insufficient funds, leading to negative available balances on the Referrer's account.
4. Enable Revenue Share Feature
Finally, to allow your Referrer to generate reports and view active percentage splits of their Revenue Share, you’ll need to enable the Revenue Share page from the Referrer’s Host Profile page using the Features menu:
Step 1: Access the Host Profile page for the Referrer, then click Features from the left-hand menu.
Step 2: Scroll to Page: Revenue Share and toggle the option On for Referrer, Referrer Admin, and Facilitator.
Result: The Referrer can now view the Revenue Share menu on their own Referrer Profile page, and can generate a Revenue Share report, a statement detailing the amounts in each fee type
Revenue Sharing Buckets
As mentioned earlier, the Revenue Share feature can be set at various rates for separate Revenue Sharing Buckets. There are three Revenue Sharing Buckets:
Credit Card Transaction Fees - These encompass volume and transaction-based fees for card processing, covering Visa, Mastercard, American Express, Discover, PIN Debit, and Interac Debit. For Canadian transactions, an additional charge is included to accommodate BIN sponsorship fees.
ACH Transaction Fees - These involve volume and transaction-based fees applicable to eCheck/ACH processing.
Value-Added Service Fees - This category encompasses fees related to value-added services or other ancillary charges such as chargebacks, payouts, returns, onboarding, monthly accounts on file, Safer Payments, Omnitoken fees, etc.
Fee-Type Bucket
Fee
Description
Fee-Type Bucket
Fee
Description
Credit Card Transaction Fees
Auth Fee
Payments are Authorized (i.e. when credit card payments are "Approved").
Capture Fee
"Approved" credit card payment updates to "Captured" status.
Refund Fee
Merchant refunds a credit card payment.
Interchange Fee
Interchange costs assessed to a credit card transaction by the processor via card brand networks.
Reverse Auth Fee
Merchant voids an "Approved" credit card payment.
Card Settlement Fee
Merchant voids an "Approved" credit card payment.
ACH Transaction Fees
eCheck Sale Fee
eCheck (ACH) payment is submitted.
eCheck Refund Fee
Merchant refunds an eCheck (ACH) payment.
GIACT eCheck Verification Fee
Perform real-time account status checks for consumer and business bank accounts using gVerify from GIACT.
eCheck Settlement Fee
"Captured" ACH transactions update to Settled.
Value-Added Service Fees
Board Fee
Merchant’s account is created on the Payrix Platform
Payout Fee
Payout is sent to a Merchant’s bank account
Chargeback Fee
‘First Chargeback’ dispute stage is reached against a Merchant
ACH Failure Fee
Payout to a Merchant’s bank account fails or returns
Retrieval Fee
‘Retrieval’ dispute stage is reached against a Merchant
Arbitration Fee
'Arbitration' dispute stage is reached against a Merchant
eCheck Return Fee
eCheck (ACH) payment is “Returned” (i.e. issuer declined)
eCheck NOC Fee
Notification of change on an eCheck (ACH) payment
Account Updater Request Fee
Successful check and confirmation of enrollment in Account Updater
Account Updater Update Fee
Account Updater performs a successful update of an entity’s bank account payment token with the corresponding refreshed account information
Account Updater Group Request Fee
Successful check and confirmation of pre-configured group of entities enrollment in Account Updater
Account Updater Group Update Fee
Account Updater performs a successful update of bank account payment tokens for a pre-configured group with each entity’s corresponding refreshed account information
FANF Fee
Externally Calculated Fee; Triggers when a Visa Fixed Acquirer Network Fee is assessed to the Referrer or Facilitator by Visa for a Merchant’s brick-and-mortar store(s) and online platform, where credit cards payments are accepted for goods or services
MCLocation Fee
Externally Calculated Fee; Triggers when Merchant Location Fee is assessed by Mastercard for a Merchant’s brick-and-mortar store(s) and online platform, where credit cards payments are accepted for goods or services
Visa Integrity Fee
Externally Calculated Fee; Triggers when a Visa Transaction Integrity Fee is assessed by Visa for Merchants who’s transactions don't qualify for Visa’s Custom Payment Services (CPS) due to insufficient or incomplete data being submitted with transactions for clear interchange qualification
SaferPayments - Basic Fee
Perform PCI DSS compliance review and action(s) associated with an entity
SaferPayments - Managed Fee
SaferPayments fee is assessed from WorldPay for PCI DSS compliance review and action costs associated with an entity
SaferPayments - PCI Non-Validation Fee
Merchant fails to meet PCI DSS compliance requirements within 60 days of boarding the platform and each following month until the Merchant meets PCI DSS compliance during the next monthly validation
OmniToken Fee
WorldPay OmniToken monthly service enabled for a Merchant
ValueTec - Essential Gift Package Fee
WorldPay ValueTec Gift card monthly service enabled for a Merchant
ValueTec - Essential Gift Monthly + Transaction Fee
WorldPay ValueTec Gift card monthly service enabled for a Merchant with gift card transaction fees.
ValueTec - Digital Gift Plus Package Fee
WorldPay ValueTec Digital Gift card monthly services enabled for a Merchant
ValueTec - Digital Gift Plus Package + Transaction Fee
WorldPay ValueTec Digital Gift card monthly services enabled for a Merchant with gift card transaction fees.
ValueTec - Transaction Fee
WorldPay ValueTec monthly service gift card transaction fees.
ValueTec - Gift ACH Pooling Fee
WorldPay ValueTec monthly service gift card loading from one or more eCheck deposits.
ValueTec - Maintenance Fee
Recurring WorldPay ValueTec Gift card monthly service for enablement and general maintenance; a service fee.
ValueTec - Digital Gift Mass Enablement Fee
WorldPay ValueTec Digital Gift card monthly services enabled for all Merchants under the Referrer simultaneously
Fee Entries & Calculations
The following fee types will be treated as new transactions on the platform and will not update existing transaction entries or chargeback entries:
Credit Card Returns
Chargebacks
Time-Based Entries & Calculations
Value-added services, like OmniToken, SaferPayments, and Valuetec, check records daily for new entries such as chargebacks that match specific criteria of the pre-defined fee schedule. From here the amount deducted in the Revenue Share is calculated.
Revenue Share Reporting
Revenue Share data can be found as a report option under the Generate Report tab. To generate a Revenue Share report, select Revenue Share from the “Select Report” drop-down.
From here, you can further refine the report by selecting the month, year, entity, and Fee Type [Buckets].