Explore how more visits, higher spend and lower churn could raise processing residuals, agent income and portfolio value. Change any assumption; every figure updates.
ISO · portfolio economics
Estimated incremental ISO residual · year 1
vs. without Enroll & Pay
existing monthly residual · modeled 3-year uplift including retention · more on a sale of the book
Existing ISO monthly residual
Incremental annual residual
3-year uplift incl. retention
Incremental ISO net sale proceeds
Current monthly processing residuals
Traditional merchants
Cash discount merchants
Existing ISO monthly residual
ISO monthly residual after ENP lift
Incremental ISO monthly residual
Incremental ISO annual residual
Incremental ISO 3-year residual (no churn)
Sales growth combines spend + additional monthly visits, weighted by enrolled customers’ share of baseline sales.
Three-year retention scenario · no merchant replacements
Expected 3-year ISO residual, baseline
Expected 3-year ISO residual, with ENP
Combined modeled 3-year uplift
Your portfolio, side by side
Expected 3-year ISO residual under each retention scenario.
Interpretation. The 3-year uplift includes both the sales lift and the churn scenario; do not add it to the no-churn uplift.
Portfolio resale value · the ISO sells the whole book
Before ENP lift
After ENP lift
Difference
Total monthly residual (ISO + agent)
Book sale price at
Agent buyout at
ISO net proceeds on sale
ISO total value: 1 year extra residual + sale uplift
Sale value is a point-in-time value, not additional annual cash flow.
ENP agent commissions are excluded from both multiples (not confirmed transferable).
What could this look like over time?
ISO residual
Without E&P
With E&P
Difference
Fixed starting portfolio, no replacement merchants; churn applied at each year-end. Revenue is the annualized run rate for that year, not cumulative cash.
Assumptions & calculation methodology
Traditional merchants = merchants × (1 − cash discount share); cash discount merchants = merchants × cash discount share.
Existing ISO monthly residual = volume × bps ÷ 10,000 × merchants in each mix (traditional at , cash discount at ), summed, × ISO share.
Blended lift = enrolled share × ((1 + spend lift) × (1 + extra visits ÷ baseline visits) − 1) = .
ISO residual after lift = existing × (1 + blended lift × adoption).
3-year retention factor = 1 + r + r², where r = 1 − annual churn (year-end attrition, no replacements).
3-year with ENP = existing × 12 × (1 − adoption) × baseline factor + residual after lift × 12 × adoption × ENP factor.
Total monthly residual (ISO + agent) = volume × bps ÷ 10,000 × merchants in each mix, summed; after lift = total × (1 + blended lift × adoption).
Book sale price = total monthly residual × ISO book multiple ().
Agent buyout = agent monthly processing residual × agent multiple (), the same figure as the agent’s book value.
ISO net proceeds on sale = book sale price − agent buyout; incremental = after lift − before.
ISO total value = incremental ISO annual residual + incremental ISO net sale proceeds.
Rates are basis points of merchant volume; cash discount mix is a share of merchant count.
Churn scenarios are illustrative, not causal proof. The lift and retention changes are scenarios, not proven Enroll & Pay outcomes.
No subscription revenue share to the ISO is assumed. Unchanged bps on incremental volume, no change in merchant mix.
The 3-year uplift includes both the sales lift and the churn scenario; do not add it to the no-churn uplift.
Agent · residual & book value
Estimated additional agent income · year 1
+ book value at
more processing residual + ENP commission per month
Additional income / year
Incremental book sale value
3-year income improvement
Processing residuals & commissions
Existing agent monthly processing residual
Agent monthly processing residual after lift
Additional agent processing residual / month
ENP agent commission / month
Additional total agent income / month
Additional total agent income / year
Additional total income over 3 years (no churn)
Portfolio resale value · personal monthly processing residual
Book value before sales lift
Book value after sales lift
Incremental book sale value
Total agent value: 1 year extra income + sale uplift
Sale value is a point-in-time value, not additional annual cash flow.
Agent ENP commissions are excluded from the valuation (not confirmed transferable).
Expected 3-year agent income under each retention scenario (with ENP includes ENP commissions).
What could this look like over time?
Agent income
Without E&P
With E&P
Difference
Fixed starting portfolio, no replacement merchants; churn applied at each year-end. Revenue is the annualized run rate for that year, not cumulative cash.
Assumptions & calculation methodology
Existing agent monthly residual = existing ISO monthly residual × agent share ÷ ISO share (the agent’s share of the same total residual).
Residual after lift = existing × (1 + blended lift × adoption).
ENP agent commission / month = merchants × adoption × commission per merchant.
Book value = agent monthly processing residual × (commissions excluded).
Total agent value = additional income for one year + incremental book sale value.
3-year with ENP = existing × 12 × (1 − adoption) × baseline factor + (residual after lift − existing × (1 − adoption) + commission) × 12 × ENP factor; factor = 1 + r + r², r = 1 − churn.
The buyout is applied only to the agent’s personal monthly processing residual, paid by the ISO.
Agent ENP commissions are excluded from the valuation (not confirmed transferable); the commission is an editable assumption.
Sale value is a point-in-time value, not additional annual cash flow.
Year-end attrition, no replacements; churn scenarios are illustrative, not causal proof.
Portfolio · size scenarios
ISO annual uplift at merchants
existing annual residual to protect
Portfolio scale · mixed traditional / cash discount
Every other input stays as set on the left; only the merchant count changes.
Merchants
ISO annual uplift
ISO 3-year uplift
Agent annual uplift
Agent sale (exit) uplift
ISO sale (exit) uplift
Existing ISO annual residual to protect
Annual uplift by portfolio size
ISO annual uplift vs agent annual uplift (agent includes ENP commissions). Hover a bar for the exact figures.
Assumptions & calculation methodology
ISO annual uplift = N × volume × ((1 − cash discount share) × traditional bps + cash discount share × cash discount bps) ÷ 10,000 × ISO share × blended lift × 12 × adoption.
ISO 3-year uplift = ISO annual uplift × 3 (no churn).
Agent annual uplift = ISO annual uplift × agent share ÷ ISO share + N × adoption × commission × 12.
Agent sale (exit) uplift = agent processing uplift (commissions excluded) ÷ 12 × .
Existing ISO annual residual to protect = N × volume × blended bps ÷ 10,000 × ISO share × 12.
Scales the mixed portfolio across 100–5,000 merchants with every other assumption unchanged.
Assumes unchanged bps on incremental volume, no changes in merchant mix and no replacement merchants.
How to read this
Purpose & usage
Change the inputs on the left. Every figure on every tab updates; Copy link saves your numbers in the URL.
The ISO tab shows current residuals, the lift, and illustrative 3-year retention scenarios.
The Agent tab shows processing uplift, ENP commissions, and book sale value.
The Portfolio scale tab scales the mixed portfolio across 100–5,000 merchants.
Cash discount share means the percentage of merchants on cash discount, not the cash discount fee charged to customers.
The buyout is applied only to the agent’s personal monthly processing residual, paid by the ISO.
The merchant-wide lift (currently ) and the retention changes are scenarios, not proven Enroll & Pay outcomes.
No subscription revenue share to the ISO is assumed; the ENP agent commission is an editable assumption.
The agent’s book sells to the ISO at the agent multiple ( monthly). The ISO can sell the whole book — its share plus the agent’s — at the ISO multiple ( monthly, annual) and keeps the spread after buying the agent out. Both multiples are editable assumptions.
The model assumes unchanged bps on incremental volume, no changes in merchant mix and no replacement merchants.
Spend + frequency assumptions
Edit the four inputs under Customer spend & visits: spend increase, extra visits per month, baseline visits per month, and enrolled customers’ share of baseline sales.
Together they produce the blended merchant-wide lift, which automatically updates every tab and scenario.
Default examples: +20% per transaction, +1.4 visits/month, 2 baseline visits/month, 25% of baseline sales enrolled.
Do not apply customer-level uplift to the entire portfolio unless enrollment actually covers all baseline merchant sales.
The extra-visits input is additional visits per month: 1.4 means 1.4 additional visits, not 1.4× total visits.
The 25% enrolled-sales share and 2.0 baseline visits are editable examples, not measured ENP results.
Only count truly incremental visits and spend; avoid counting an already-combined 20% lift twice.
Model treatment
Model basis
Rates are basis points of merchant volume; the cash discount mix is a share of merchant count.
Commission treatment
The ENP agent commission is excluded from the book valuation (not confirmed transferable).
Retention treatment
Year-end attrition, no replacements; churn scenarios are illustrative, not causal proof. Three-year factor = 1 + r + r², where r = 1 − annual churn.
Sales lift treatment
Spend and visits compound only for enrolled customers, then are blended by those customers’ share of baseline merchant sales.
Reading the 3-year figures
The 3-year uplift includes both the sales lift and the churn scenario; do not add it to the no-churn uplift.
Reading the sale value
Sale value is a point-in-time value, not additional annual cash flow.
Glossary
ISO
Independent sales organization: the company that holds the merchant processing relationships and is paid residuals by the processor.
Agent
The salesperson or sub-office that signs merchants for the ISO and is paid a share of the residual.
Residual
The recurring monthly income an ISO or agent earns from a merchant’s card processing, here a rate times monthly card volume.
bps
Basis points: hundredths of a percent. 30 bps = 0.30% of volume.
Cash discount
A pricing program where the merchant passes card fees to the customer; in this model it has its own residual rate. The input is the share of merchants on it, not the fee.
Book multiple
What a buyer pays for an agent’s book of merchants, expressed as months of the agent’s personal monthly processing residual.
ISO book multiple
What a buyer pays for the ISO’s whole book — ISO share plus agent share of the residual — expressed as months of total monthly residual. 60× monthly = 5× annual.
Agent buyout
What the ISO pays the agent for the agent’s share of the book when the book is sold: the agent’s personal monthly processing residual × the agent multiple.
