Residuals for Sale
Valuation

How merchant residuals and portfolios are valued.

The short version: a multiple of your monthly residual, with the multiple set by size, attrition, portability, and a handful of other factors. Here is how buyers actually think about your book.

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The basic formula

A merchant residual or portfolio is generally valued as a multiple of its monthly net residual or revenue. Generally speaking, the larger the residual, the higher the multiple. Books above 100,000 dollars a month price better than significantly smaller ones, and books above 1,000,000 dollars a month price better still. But size only sets the starting point. The factors below decide whether a buyer pays the top of the range or the bottom.

We do not quote a single multiple, because a generic number would mislead you. What we do is give you a real range based on what buyers are paying right now for a book like yours, then run a process that pushes you to the top of it.

What moves your number

The factors buyers underwrite.

Size of the book

The single biggest driver. A portfolio over 100,000 dollars a month earns a higher multiple than a significantly smaller one, and a book over 1,000,000 dollars a month earns more still. Bigger books are scarcer and more strategic, so buyers pay up.

Account attrition

How fast merchants close or leave. Buyers underwrite the decline curve, so a stable, low-attrition book is worth materially more than one bleeding accounts.

Revenue attrition

Separate from account loss: shrinking volume from the merchants you keep. A book that is flat or growing on a same-store basis commands a premium.

Portability

Do you own the merchant agreement and can repoint the accounts to another processor, or do you only own the residual stream? Portable books are worth more because the buyer controls the relationship.

Merchant type (MCC)

The mix of merchant categories matters. Low-risk, sticky verticals are valued higher than high-risk or seasonal categories that scare underwriters.

Card-present vs ecommerce

The channel mix affects risk, attrition, and interchange economics, and therefore the multiple a buyer will pay.

Future production

Whether new merchant accounts come along with the sale. A book attached to an engine that keeps producing is worth more than a static one.

The mistake that costs sellers the most

It is not picking the wrong multiple. It is taking the first offer. Most owners talk to one or two buyers, accept a number that sounds fair, and never learn what a competitive process would have produced. The lift between a quiet deal and a real auction is usually 12 to 18 percent, and the terms (holdback, earnout, non-solicit) often matter as much as the price. That is the whole reason to run a process, and it is what we do.

Want the deeper mechanics on ISOs specifically? See 733Park's guide on how to value an ISO.

Valuation FAQ

Valuation questions, answered.

How much is my merchant portfolio or residual worth?
Value is generally a multiple of your monthly residual or net revenue, and the larger the book, the higher the multiple. A portfolio over 100,000 dollars a month earns a higher multiple than a significantly smaller one, and a portfolio over 1,000,000 dollars a month earns more still. Multiple also depends on attrition, portability, merchant type, card-present versus ecommerce mix, and whether future production is included.
What multiple do merchant portfolios sell for?
It varies with size, attrition, and portability, so a single quoted number would be misleading. We give you a real range based on what buyers are actually paying right now and the specifics of your book, not a textbook figure.
What factors lower my valuation?
Account attrition (merchants closing or leaving), revenue attrition (merchant volume declining), lack of portability (you own only the residual stream, not the merchant agreement), risky or low-quality merchant categories, and no ongoing production of new accounts. We help you frame each of these so they cost you as little as possible.
Is now a good time to sell my residual?
It has been a strong seller's market for merchant portfolios and residuals, with active buyers of every size in the market. The right time is usually when your book is healthy and growing rather than after attrition sets in. We will tell you honestly where the market is for a book like yours.

Get a real number for your book.

Tell us your monthly residual and a bit about the portfolio. We will give you an honest range and what it would take to hit the top of it. Free and confidential.

Get a free valuation