ISO & sales-agent compensation

Global Payments stopped paying your residuals?

If your monthly residual payment was stopped, reduced, withheld, offset, or recalculated, the next step is to identify what the agreement promised, what changed, and what reason was given.

Start here

Searching “Global not paying residuals” is only the beginning.

If you are an ISO, independent sales agent, referral partner, or payments company and Global Payments has changed your residual compensation, the answer may depend on the language of your agreement, the history of the merchant portfolio, and the reason given for the change.

A residual provision that looks straightforward may be affected by separate terms addressing default, termination, merchant attrition, indemnification, setoff, exclusivity, solicitation, assignment, or ownership of the merchant relationship.

No assumption before review A search phrase does not establish that a payment was improperly withheld. The contract, notices, reports, and underlying facts determine the available analysis and options.

Issues that may drive the dispute

Termination

Whether compensation survives termination and what events can end it.

Default

Alleged solicitation, confidentiality, exclusivity, or other contractual breach.

Offsets

Chargebacks, losses, indemnification, legal costs, reserves, or other deductions.

Calculation

Buy-rate changes, pricing schedules, pass-through costs, or reporting errors.

Portfolio rights

Merchant ownership, portability, assignment, and post-termination access.

Value

Past-due payments and, when recoverable, the value of future compensation.

What does the agreement actually say?

Merchant-services, ISO, and sales-agent agreements vary dramatically. A useful review generally traces the compensation framework across the entire document and every amendment.

  1. Define the promised compensation. Identify the revenue split, pricing schedule, expenses, merchant-level adjustments, and reporting duties.
  2. Trace the termination framework. Review notice, cure, default, immediate-termination, and continuing-compensation provisions together.
  3. Test the asserted justification. Compare the reason given for withholding against the agreement’s indemnity, setoff, loss-allocation, and default language.
  4. Reconstruct the numbers. Compare historic reporting, merchant data, pricing, and deductions to determine what changed and when.

Preserve these records now

  • The original agreement, schedules, addenda, renewals, and amendments
  • Monthly residual reports and merchant-level statements
  • Payment history and bank records showing the change
  • Termination, default, demand, or indemnification notices
  • Emails about pricing, merchants, portfolio ownership, or assignments
  • Documents supporting any chargebacks, reserves, losses, or offsets
  • Merchant lists and attrition data needed to evaluate the stream

Global Payments and published residual litigation

Global Payments publicly provides residual-reporting resources for partners. There is also published litigation involving Global and an ISO that addressed residual compensation, withheld sales fees, termination, merchant relationships, and contractual provisions.

In Global Payments Direct, Inc. v. Frontline Processing Corp., the Georgia Court of Appeals reversed portions of a large trial verdict and required a new trial on remaining claims. The opinion is useful because it shows how closely the analysis turns on the specific agreements, claimed breaches, proof of damages, and procedural posture—not because it predicts the outcome of a different dispute.

Why payments-industry experience matters

Carbide Law evaluates the underlying processing relationship, economics, merchant portfolio, compensation structure, operational facts, and contractual risk allocation. That context helps distinguish a reporting issue from a contract dispute—and a negotiable business problem from a claim that may require formal action.

Common questions

Can Global Payments stop paying residuals?

It depends. The agreement may permit suspension, deduction, or termination of compensation after specified events, while other language may preserve ongoing rights. The reason given and the facts must be compared with the full agreement.

Do residual payments continue after termination?

Some agreements provide continuing payments while others condition or end compensation following certain defaults or termination events. Amendments and related schedules may materially change the answer.

Can chargebacks or losses be deducted?

Many payments agreements contain risk-allocation, reserve, indemnification, or setoff provisions. The scope, documentation, timing, and calculation of the asserted deduction should be reviewed.

How is a residual stream valued?

Historic monthly payments, merchant attrition, pricing, concentration, contract duration, enforceability, and risk adjustments may all matter. Legal recoverability and economic value are related but distinct questions.

Residual review

Determine what changed—and whether the agreement permits it.