Navigating DWP's 20% Residuals

A few agents have contacted us asking for clarification on residual payments. Rather than respond individually, we decided to share it with all of our agents..

Residual payments are based on 20% of a merchant's processing fees. However, please keep in mind that Visa, MasterCard and the rest of the credit card companies take a portion before the processor nets their fees.

As an example, if a merchant does $100,00 in processing for a month, the processor may charge $1500 in processing fees. $1000 may go to Visa/MC/Discover, which leaves $500 going to the processor. As the residual is based of the processor’s profit, the 20% residual would be $100.*

Below is a document that gives an estimated range of residuals. Please remember, all fees depend on which processor and which program the merchant is set up with.

*Please note these are estimates. Each processor and/or program has a different fee structure so figures are not exact.