MCA Commission
MCA commission is the percentage payment earned by an ISO, broker, or sales rep when a funded deal closes — typically calculated as a percentage of funded principal amount, paid by the funder upon deal funding — driving the economic structure of MCA distribution.
Why This Matters
Commission economics drive MCA distribution. Standard ranges: 5-12% on first-position deals, 3-8% on second-position, 8-15% on premium or specialty programs. Some funders pay tiered commission scales rewarding high-volume ISOs. Residual commissions on renewals add 1-3% annual income on funded portfolios for ISOs maintaining long-term merchant relationships. For ISOs, commission economics determine which funders to prioritize on submissions — ISOs route deals to funders offering best combination of approval likelihood, commission rate, and turnaround speed.
Example
ISO submits $75K deal at 9% commission. Funder approves and funds. Same-day commission wire: $6,750. Across 10 funded deals monthly at $50K average and 8% average commission: $40,000 monthly commission revenue. High-volume ISOs scale to 25-50+ funded deals monthly, generating $100K-$300K monthly income.
Frequently Asked Questions
Frequently Asked Questions
When is MCA commission paid?
Typically at funding — commission wires same-day or next-day after merchant receives funding. Some funders defer commission pending merchant first-payment performance; others claw back commission on merchants who default within early-payoff windows (typically 30-60 days post-funding).
Are commissions negotiable with funders?
Yes — for high-volume ISOs. Funders compete for ISO submission flow and offer enhanced commission tiers, exclusivity bonuses, and volume rebates to producers above defined thresholds. Solo brokers and low-volume ISOs typically receive standard published commission rates.