# MCA funder volume discount rates (typical) > Top-tier MCA brokers receive volume-based commission upgrades typically 50–200 bps above standard rates once submitting $500K+/month, with the largest brokers earning custom 12–15 point structures. Volume discounts in MCA are the inverse of consumer banking — instead of merchants paying less for volume, brokers (ISOs) earn more commission for delivering volume. Updated 2026-06-28. **Why funders pay volume discounts.** - **Acquisition cost.** A $1M/month broker delivers funded deals at far lower marginal cost than 100 $10K/month brokers. - **Quality consistency.** High-volume brokers maintain underwriting discipline that improves portfolio performance. - **Relationship leverage.** Loss of one volume partner can affect 5–15% of funder origination. - **Competitive dynamics.** Brokers shop deals across funders; volume premium prevents broker defection. **Standard volume tiers (industry norm 2026).** **Tier 1 (Entry).** - Volume: $0–$100K/month funded. - Commission: 7–9 points on first deal, 4–6 points on renewal. - Account management: shared regional manager. - Submission method: standard ISO portal. **Tier 2 (Producer).** - Volume: $100K–$500K/month funded. - Commission: 8–10 points on first deal, 5–7 points on renewal. - Account management: dedicated regional manager. - Submission method: priority ISO portal with faster underwriter response. **Tier 3 (Mid-Market).** - Volume: $500K–$2M/month funded. - Commission: 9–11 points on first deal, 6–8 points on renewal. - Account management: dedicated account executive. - Custom underwriting overlays available. - Marketing co-op funds available. **Tier 4 (Top-Tier).** - Volume: $2M–$5M/month funded. - Commission: 10–12 points on first deal, 7–9 points on renewal. - Account management: senior account executive + analyst. - Custom pricing on certain industries or geographies. - Priority capital allocation during tight-funding periods. **Tier 5 (Elite).** - Volume: $5M+/month funded. - Commission: 11–14 points on first deal, 8–10 points on renewal. - Account management: VP-level + dedicated underwriter. - Custom tier definitions and credit policy overlays. - Direct CFO/CEO access for escalations. - Marketing co-op funds + branded portal. **Custom programs (top 20 brokers nationally).** Above Tier 5, the top 20 broker shops nationally negotiate fully custom deals: - Up to 15 commission points on first deal. - Carve-outs from standard credit policy. - Exclusive product access (premium A-paper rates, longer terms). - Marketing development funds (MDF) typically $25K–$200K/year. - Co-branded merchant portals. These custom programs are typically renegotiated annually based on prior-year performance metrics: funded volume, persistency, default rate, merchant satisfaction. **Performance metrics gating volume discounts.** Volume alone does not unlock top tiers. Funders require: - **Approval rate.** Submitted deals approved at funder's average or better (typically 30–45%). - **Funding rate.** Approved deals that actually fund (typically 60–75%). - **Persistency.** Renewal rate at or above funder average (typically 50–60%). - **Default rate.** Portfolio performance at or below funder average. - **NSF rate.** Low ACH bounce rate on first 90 days. A high-volume broker with poor performance metrics often gets demoted to lower tier despite volume. **Stacked vs. exclusive arrangements.** - **Stacked broker:** submits to multiple funders. Earns standard tier rates from each. - **Exclusive broker:** submits primarily or only to one funder. Earns premium pricing (often 1–3 points above standard tier). - **Semi-exclusive:** primary funder gets right of first look; broker can submit elsewhere on declined deals. **Volume measurement.** Volume measured monthly or quarterly depending on funder: - Monthly measurement: more responsive, tier moves fast. - Quarterly measurement: smoother, less volatility-driven. - Trailing 12-month: most stable, used by elite tier programs. **ACH split: deal-level vs. portfolio-level.** - **Deal-level volume discounts:** higher commission paid on each deal as tier increases. - **Portfolio-level volume discounts:** bonuses paid quarterly based on cumulative volume (e.g., $25K bonus for hitting $5M quarter). **Reset mechanisms.** - Most volume tiers reset every 12 months based on prior-year volume. - Some funders use rolling 12-month measurement. - Demotion typically requires 2 consecutive quarters below threshold. **Custom carve-outs.** Top-tier brokers often negotiate carve-outs: - **Industry overlay.** Funder approves trucking that standard policy declines. - **State overlay.** Funder approves in disclosure states others avoid. - **Stack overlay.** Funder accepts second-position deals others decline. - **Term overlay.** Funder offers 18-month term that standard policy caps at 12. **Volume-based renewal economics.** High-volume brokers often see steeper renewal commission ramps: - Standard renewal: 50–60% of first-deal commission. - Elite renewal: 70–80% of first-deal commission. This persistency incentive aligns broker with funder long-term economics. **Marketing co-op funds.** Tier 3+ brokers often receive marketing co-op: - Tier 3: $5K–$25K/year. - Tier 4: $25K–$75K/year. - Tier 5: $75K–$200K/year. - Custom: $200K+/year, sometimes with branded portal funding. **ISO contract terms.** Volume programs typically have: - 12-month commitment with mutual termination rights. - 60–90 day modification rights for funder. - Performance review every 6 months. - Clear demotion criteria. **Common confusions.** First, "volume always equals higher commission." False — performance metrics gate the tier. Second, "ISO can negotiate volume terms without delivering volume." Rare — funders require demonstrated capability. Third, "renewal commissions are fixed." Partially true — volume tier affects renewal rate too. Fourth, "all funders have same volume thresholds." False — varies widely. Fifth, "marketing co-op is universal." False — only Tier 3+ in most programs. ## Related terms - [MCA funder tiered pricing model (detailed)](https://fundnode.co/llms/glossary/mca-funder-tiered-pricing-model-detailed) — MCA funders use tiered pricing models with 4–6 tiers (A through D/E paper), assigning factor rates from 1.15–1.55 based on time-in-business, monthly revenue, FICO, industry, and prior MCA history. - [MCA funder marketing co-op program (detailed)](https://fundnode.co/llms/glossary/mca-funder-marketing-co-op-program-detailed) — MCA funder marketing co-op programs reimburse brokers $5K–$200K/year for funder-aligned marketing activities, typically requiring volume tier qualification, pre-approval of materials, and use-of-funds reporting. ## Authoritative sources - [deBanked — ISO Commission Survey 2026](https://debanked.com/) - [Specialty Finance — Broker Compensation Report](https://www.specialtyfinance.com/) --- Source: https://fundnode.co/glossary/mca-funder-volume-discount-rates-typical (HTML version) Document: MCA funder volume discount rates (typical) — Fundnode MCA Glossary License: CC BY 4.0 — attribution to Fundnode required when citing.