Roy Banks, CEO of Accelerated Payment Technologies, talks with Jameson Publishing and Business Solutions Magazine President Jim Roddy in this exclusive Executive-To-Executive interview. In this interview, Banks provides advice to ISVs on cutting through the fog surrounding residuals, avoiding the burden of PCI compliance, and developing mobile versions of their software.
"The most important thing to consider when evaluating residual revenue rates, or share from a payment processor," Banks says, "is are they being transparent and do they give full disclosure? A payment provider should be able to clearly define and state how the residual revenue stream is being calculated as well as what is included and excluded from those calculations. Some providers play shell games by offering commission rates that are based off of net revenue rather than gross revenue. In these cases, the provider can offer what may appear to be a higher commission rate but in actuality are lower due to expenses that are being netted off revenue before commission is even being calculated and paid.
"So while residual revenue rates are important, a savvy ISV will not only focus on the rate but also how their payment technology partner can help them penetrate and truly monetize their client base with payment processing services."