Merchant Portfolio
The collection of merchant accounts a payments company processes for, valued for sale based on the income stream they generate.
Full definition
A merchant portfolio is the book of business an ISO, processor, or payfac has built up. Portfolios are typically valued as a multiple of net monthly residual income, adjusted for attrition rate, portfolio diversification, processor mix, and vertical concentration. Portfolios with low attrition, diverse merchant verticals, and modern POS integration command premium multiples.
Related terms
A third-party company authorized to sell or lease payment processing services on behalf of a sponsoring bank or processor.
The ongoing income an ISO or agent earns from each merchant they have boarded, paid as a percentage of processing margin.
The unique identifier assigned to each merchant by a payment processor. The unit of measurement for portfolio size.
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