Evaluate an ISV payment partnership using eligible volume, contractual revenue, support costs, and practical operating responsibilities.
A big payment volume is not the same as a big margin
A software founder hears a revenue-share percentage and multiplies it by all customer payments. The forecast looks wonderful because it uses the wrong base. Commercial arrangements differ: the share might apply to a defined markup or net revenue after specified deductions, rather than total processed volume.
Ask what the percentage applies to
Request a written definition of eligible revenue, excluded transactions, deductions, payment timing, and any conditions for earning or retaining the share. Clarify treatment of refunds, disputes, dormant merchants, termination, and merchants already connected to a provider. Avoid treating a verbal example as a final offer.
Also ask who owns the customer relationship, who provides support, and what happens if a merchant changes providers. These details can matter as much as a headline percentage because they affect the ongoing work required from your team.
Build an illustrative model before a forecast
Suppose a hypothetical arrangement produces $10,000 in contract-defined eligible monthly revenue and the platform receives 20 percent. That is $2,000 before the platform's own costs. If support and integration operations cost $1,200, the illustrative contribution is $800. These are invented numbers to show the calculation, not MIDsource pricing or expected results.
Now test slower merchant adoption, lower eligible volume, and higher support demand. Model integration costs separately from monthly operations. Forecast only merchants that can actually be approved and activated, rather than your entire customer list.
Keep the merchant experience in the calculation
An arrangement that generates revenue but creates confusing statements or long support queues can hurt software retention. Define service expectations, reporting access, funding escalation, and ownership of customer communications before launch. Give the team a way to review the relationship after the pilot.
Compare payment revenue with the total cost of delivering it: engineering maintenance, onboarding assistance, finance reconciliation, and customer support. Separate costs borne by the provider from those allocated to your platform, using the written agreement.
What to discuss with MIDsource
MIDsource invites ISVs to explore revenue-sharing opportunities based on customer base, payment volume, and business goals. Bring a realistic adoption estimate, your current payment arrangement, and the responsibilities your team can support. Ask for a clearly defined commercial proposal before presenting expected income to stakeholders.
Tell us about your software, your customers, and your current payment setup.
Discuss your ISV payment options