How to Value a Merchant Services Portfolio

If you’re an ISO or agent considering a portfolio sale, your first question is likely: How much is my merchant portfolio worth? In this guide, we’ll break down how buyers like CardChamp determine the value of your residual stream — and how you can get the best deal.

1. What Is a Merchant Portfolio?

A merchant services portfolio is the collection of merchants processing credit card payments through your residual stream. The monthly income you receive is the basis for valuation.

2. Key Valuation Factors

Buyers look at multiple variables:

Monthly Net Residuals: Typically the #1 factor.

Attrition Rate: High merchant turnover lowers value.

Processing Platform: CardConnect, Fiserv, TSYS = preferred.

Portfolio Age & Size: More mature portfolios = higher multiples.

Merchant Mix: Retail vs. high-risk verticals.

Contractual Constraints: First right of refusal clauses may delay or complicate sales.

3. Common Valuation Multiples

Typical buyout multiples range from:

• 15x – 30x for agent portfolios
• 30x – 36x for ISO-level portfolios with low attrition

Example: If you earn $5,000/month in net residuals and are offered a 20x multiple → Sale Value = $100,000

4. What Can You Do to Increase Value?

• Reduce merchant churn
• Improve residual reporting consistency
• Provide a clean processor split (e.g. 100% CardConnect)
• Remove outstanding debts or clawbacks

Conclusion

Valuing a merchant services portfolio is more than just a math equation. At CardChamp, we offer fair, confidential valuations based on 15+ years of experience in payments. Get a free portfolio valuation here →