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Transparent Agent Compensation in Merchant Services: Why Optec Payments Offers a Higher Effective Split Than Traditional ISOs


One of the least discussed but most critical aspects of the payment processing industry is agent compensation. A majority of Independent Sales Organizations (ISOs) add a significant markup to the costs presented in Schedule A, which serves as a guideline for commissions. This padding often results in agents receiving considerably less than what they should be making on deals. However, Optec Payments is taking a different approach, offering a transparent model with a true 60% split. Here's why that's a game-changer.

The Traditional Model and Its Pitfalls

In a conventional setting, ISOs present agents with a Schedule A that outlines the costs and fees associated with merchant services. Unfortunately, many ISOs pad these costs, inflating fees such as transaction charges, customer service fees, and various other line items. As a result, even if agents are promised a 70% split, the actual payout can be significantly less due to the inflated costs on Schedule A.

The Math Behind Padded Rates

Let’s say an ISO receives $1000 from a merchant for a month of processing. The Schedule A might include costs that total $400, leaving $600 to be split between the agent and the ISO. While a 70% share might sound appealing, that’s 70% of $600, which is $420. However, if the Schedule A costs are padded, the real costs might be closer to $300. This means the ISO is taking an extra $100 off the top, and the agent’s actual share is diluted further.

Optec Payments: A Paradigm Shift

Optec Payments offers a unique approach. Instead of using padded rates on Schedule A, the company employs a pass-through model for all costs. In this model, agents make 60% of the total number paid to Optec, without any hidden or inflated charges.

For example, if Optec receives $1000 from a merchant, the agent will get 60%, or $600, regardless of the costs incurred. This ensures a higher, more transparent, and fairer income for the agent.

The True Advantage

By eliminating padded costs, Optec Payments provides a higher net income to agents. In a pass-through model, agents can earn more even at a 60% split than they might at a 70% split in a traditional ISO model with padded rates.


While a 70% commission might look appealing on paper, the reality can be quite different due to hidden and padded costs. Optec Payments is pioneering a more transparent approach by offering a true 60% split with a pass-through on all costs, ensuring that agents get paid what they rightfully earn. In an industry marred by hidden fees and inflated costs, it’s time for a more honest, straightforward approach to agent compensation.

Join Optec Payments today and experience the benefits of a transparent, fair compensation model.

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