FeeVerify for independent sales organisations
An ISO signs merchants for acquirers and processors and is paid residuals: a share of the margin above the buy rates in its agreement. The residual statement is calculated by the acquirer or processor, from data the ISO rarely sees in full. FeeVerify rebuilds what your residuals should be from your ISO agreement, the buy rates and the merchant pricing behind them, and checks each statement line against it, month after month.
How are ISO residuals calculated, and where do they leak?
An ISO agreement sets the buy rates the ISO pays for each kind of transaction, the share of the margin above them that it keeps, and the costs that can be taken off before it is paid. Each month the acquirer or processor applies those terms to every merchant the ISO signed and sends a residual statement.
That statement is the ISO's revenue, and it is hard to check. It summarises thousands of merchants and transactions, applies buy rates the ISO cannot see being applied, and nets off deductions in a few lines. When a buy rate is wrong, a split is miscalculated or a merchant drops off the statement, the ISO is paid less, and nothing on the page says so.
| What sets your residual | Where it leaks | How FeeVerify checks it |
|---|---|---|
| Buy rates | Rates applied above the agreement, or changed without the notice the agreement requires | Rebuilds the buy rate for each transaction from the ISO agreement and its schedules |
| Revenue share | Split calculated on the wrong base, or at the wrong tier as your portfolio grows | Recalculates the split from the margin above buy rate and the tiers in the agreement |
| Merchants on the statement | Merchants you signed missing from the statement, or credited to another ISO | Matches each merchant you signed to the statement and flags any that are missing |
| Deductions | Chargeback, compliance or equipment costs charged twice, or charged when the agreement says otherwise | Checks each deduction against the agreement and the events behind it |
| Scheme fee changes | Increases taken from your share instead of being passed to merchants as the agreement allows | Traces each scheme change through the buy rate, the merchant price and your residual |
| Merchant pricing | Merchants billed below the agreed minimum price, which shrinks the margin your share is paid on | Checks each merchant's pricing against the agreement and its effect on your residual |
Four ways FeeVerify protects an ISO's residuals
FeeVerify works for you, independent of the acquirers and processors whose statements it checks. Looking back, it finds residuals you were owed and deductions that should not have been made. Going forward, it checks each statement as it arrives and shows which partners and merchant segments pay best.
Looking back: recover what you were owed
Recover underpaid residuals
Every residual is rebuilt from the ISO agreement and compared with the statement. Shortfalls come back quantified, sourced and ready to raise with the acquirer or processor.
Challenge wrong deductions
Costs netted off the statement are checked against the agreement and the events behind them, so deductions it does not allow can be reclaimed.
Going forward: every statement checked
Check each statement as it arrives
Each month's residual statement is validated as it lands, so a changed buy rate or a missing merchant is caught in the month it happens, not at the end of the year.
Negotiate your next agreement
The true return from each acquirer partner and merchant segment sits on one basis, with every figure linked to its clause. That is the evidence for your next ISO agreement, and for choosing where to place new merchants.
None of this needs new headcount. AI does the high-volume analysis, and experienced payments specialists sign off every material finding.
Proof in production
FeeVerify is proven on a tier-one cross-border payments business, anonymised here, that runs blended and IC++ acquiring across multiple markets and had no AI-led billing reconciliation before. The diagnostic ran on one month of its real production data and was delivered within 30 days of the data arriving.
That engagement checked acquiring costs. An ISO agreement is built the same way: buy rates, splits and deductions are rules written into a contract and its schedules. FeeVerify extracts them and recalculates every line against them, exactly as it did for that business.
Figures are from an anonymised engagement; the client is not named. The proof page sets out the method and the disclosure.
Getting started
You start with a 30-day diagnostic on one month of your own data, and you see verified recoveries before any recurring fee. A good first scope is the acquirer or processor partner that pays you the most, or the one whose statements you trust least. The first call agrees that scope and the data we need.
Share your data
Your ISO agreements and their pricing schedules, your merchant list, and one month of residual statements with any merchant-level reports you receive. No integration is needed to start.
30-day diagnostic
Every residual is rebuilt from the agreement. Shortfalls and wrong deductions are quantified and linked to the clause behind them, and the findings are reviewed with your team.
Recover and continue
FeeVerify's fee is a success fee on the value you accept, with no ongoing commitment. Optional continuous assurance then checks each new statement as it lands.
Pilot terms are agreed in the contract. The how it works page covers each step in more detail.
Questions ISOs ask
We only receive a residual summary, not the transactions. Can you still check it?
FeeVerify checks most when it has merchant-level data, and many ISO agreements entitle the ISO to merchant-level reports on request. With only a summary, it can still test the buy rates, splits and deductions that were applied against the agreement, and show which merchants are missing. The first call agrees what data you have and what you can ask for.
Will raising findings strain the relationship with our acquirer partner?
Findings are easier to raise when the other side can check them. Each one links to the clause, the calculation and the source data, so your partner can follow the working instead of taking your word for it, and a payments specialist has signed it off first. FeeVerify processes and routes nothing, so it has no commercial interest in either side.
Can FeeVerify compare partners?
Yes. Each partner agreement becomes its own set of rules, and the return on each merchant segment is set on the same basis. That shows which partner pays best for which kind of merchant, and is what you take into your next agreement.
How is FeeVerify paid?
You see verified recoveries before any recurring fee. After the 30-day diagnostic, FeeVerify's fee is a success fee on the value you accept, whether that is money back, cost savings or revenue gained, and there is no ongoing commitment. Specific pilot fees and percentages are set in the contract.
Related reading
Start with one month of your own data.
A pilot begins with the agreements that protect both sides, then your contracts and one month of settlement data, scoped with a payments specialist on the first call. The 30-day diagnostic re-costs every transaction against them and shows each variance with its clause, before any recurring fee.