Credit Card Residual Buyout

January 28, 2021

Sell your credit card residual portfolio for profit. No matter the size of your residual portfolio, you can find an ISO, processor, or third-party business that might be interested in it. Some buyers have lots of money to invest and are looking for a credit card residual buyout that pays just a few thousand dollars a month. Others want to make a much larger investment and are looking for a credit card residual buyout worth as much as $250,000 per month.

Turn Your Credit Card Residual Portfolio Into Cash

Selling your credit card residual portfolio is a smart way to raise funds you might need for working capital, an expansion project, purchase much-needed office equipment, for re-investment, etc.

When you enter a credit card residual buyout agreement, you are turning over any future residuals that you might receive from the merchant/credit card accounts. That said, you can sell all or only part of your credit card residual portfolio depending on how much money you need. This can be divided many different ways; according to amounts, specified MIDs , vertical market specific, downstream breakouts, etc

Evaluating Your Credit Card Residual Portfolio for Buyout

The acquisition formula is based on a multiple calculated on the average monthly revenue.  Potential buyers that are in the market for credit card residual portfolios take into account many analysis variables. Some notable data:

  • Revenue Accounts
  • Processing Volume
  • Non-Processing Revenue Accounts
  • Average Monthly Revenue
  • Basis Point Spread
  • Revenue per Processing Account
  • Monthly Net Revenue Attrition
  • Monthly Same Store Sales Growth

What You’ll Need to Sell Your Credit Card Residuals

To sell credit card residuals, the Seller will need to provide the Buyer with data files and contractual agreements between the seller and their existing relationship; traditionally a processor or ISO.  The data files will need to be raw data files for 12-24 month history.

When you sell your credit card residual portfolio, nothing will change for the merchants. The processing relationship remains the same.

If you need a little extra money, be sure to look into a credit card residual buyout. It is a fast, easy, and low-cost way to generate cash for personal or business reasons.


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