HMS Agent and ISO Program:

Frequently Asked Questions

If this is your first time working with HMS or if you are assessing your partnership with HMS, these are the most frequent questions agents have based on what they want to determine: how much money they will make, what they will retain, what they will be able to market, and how things change once they are part of the program.
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Residuals and Compensation

How are residuals calculated, and when are they paid?
Each merchant’s month is made up of its activity at each fee level. Activity level is made up of the fee charged, the volume or count at which the fee was applied, your buy rate, and your split. All of this is run against the schedule included in your agent agreement. Payments are made under the terms of the agent agreement. Once we close a given month, we begin our calculations on the residuals for that month, and payment goes out by the end of the following month — in practice, usually around the 25th.
Every month on your Residuals page shows the payment status (either Paid or Unpaid) and the payment date. This shows you the payment status and the exact date for that payment. Just expand a merchant to see that specific month with the individual fees broken down. For detailed instructions on how to navigate residual reporting, see the Residual Reporting page.
Processor residual files are net of chargeback and adjustment activity. A bad month will reflect a lower residual on that merchant. As a matter of policy, when a merchant has already been charged a commission on disputed sales volume, HMS records a residual adjustment against a later month. Adjustments may be either one-time or recurring, are explained, and appear as their own distinct line item rather than being consolidated with a merchant’s other activities.

Portfolio Ownership and Program Terms

Is the HMS agent program exclusive, or can I work with other providers?
We are not exclusive. Agents are free to work with other providers. We would rather earn your business through service, competitive terms and features you cannot get elsewhere than lock it in by contract.
Yes, we will assist you with this. Perhaps the most important thing to know is your paperwork, especially regarding non-solicitation agreements with your current partner. A converted merchant boards to whichever partner fits, and attaches to your record with its own schedule, just like a new deal.
No, this is a point you can emphasize and win new business. A new merchant will likely be worried about a long-term commitment with their current processor, so let them know that a new contract will not be a long term one.
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Selling and Boarding Merchants

Which processing platforms can I board merchants to?
We have multiple boarding partners, including TSYS and First Data. If a merchant is not underwritten by one boarding partner, generally they would still be eligible for boarding by another partner, which means you would not lose the deal. Please see Why Partner with HMS for full details.
Absolutely, we support high-risk verticals. HMS has established banking relationships to support high-risk verticals, and negotiates cash discount and surcharge programs for those verticals. The definition of high risk is constantly in flux, so we welcome you bringing the merchant to your relationship manager for an assessment of that merchant’s vertical.
You have the flexibility to offer Interchange Plus, Cash Discount, Compliant Surcharging, Tiered Pricing, and other similar pricing options. You can adapt the pricing to the merchant’s situation, instead of quoting the same pricing model every time. Interchange Plus is generally viewed by merchants as a fully transparent pricing model. Cash Discount and Compliant Surcharging options help offset processing costs to the merchant. Tiered pricing simplifies the rate structure for merchants who do not want to concern themselves with rates.
This is usually allowed and is often important to merchants in the terms of the discussion. There is no need to say “you will have to purchase new hardware” since that is usually the first barrier that causes prospective merchant calls to end without discussions. HMS examines the hardware and software and is only in favor of a change if an upgrade is needed.
Yes. Please see What You Can Sell for the complete catalog, which includes the Cloud software suite and Bonsai POS.

Support, Tools, and Getting Started

What can I expect to find on the Agent Portal that is beneficial to me?
The Agent Portal supplies you with a single login to check your submitted portfolio, along with batch and settlement status refreshed every morning. It also lists the progress of every one of your merchants from application to residual and lets you order processing equipment. For more information, see the Agent & ISO Portal.
US-based support staff is available 24/7/365. When a merchant (located in the US) calls in with an issue, they will be helped.
>Agents receive support to create co-branded marketing materials and pitch decks, as well as training materials and positioning for each product offered. Training support is available after you are a designated partner (for more information, see Becoming an HMS Agent).
No. We have extensive experience working with agents of all levels and provide resources to those just starting in the payments industry. For a full application-to-first-residual walkthrough, see Becoming an HMS Agent, or start your application below.
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Still Have Questions

Your compensation structure and the terms of your portfolio are better explained directly than on a page. Please email us or start your application to speak with a human for more information.
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