How to compare two card-processing quotes fairly

Start with the same information

Gather a typical month of credit-card volume, number of transactions, approximate average ticket and split between in-person and online/keyed transactions. Ask each provider to illustrate costs based on the same assumptions.

Compare every category of cost

• Percentage charges: quoted processor rate, markup, interchange and card-network assessments as applicable.
• Per-transaction charges: including authorisations, refunds or additional gateway items.
• Recurring charges: statement, PCI, minimum-volume, gateway, platform or reporting charges.
• Equipment or software: terminal rental, POS subscription, hardware purchase, support and gateway integrations.
• One-time and exit charges: installation, setup and early termination where applicable.
• Operational fit: settlement timing, disputes, support, integrations and customer experience.

Calculate a like-for-like monthly estimate

Ask each provider for a written breakdown on your estimated mix. For example, if you process $30,000 in a month and pay $990 in all processing fees, your effective rate is 3.30%. That alone does not prove another provider would cost less. A lower-looking quote can still be more expensive after per-transaction charges, equipment and recurring fees.

Red flags to ask about

• A quoted rate that excludes network or interchange costs without making that clear.
• Unclear treatment of business, premium, keyed or international cards.
• Equipment lease or cancellation terms not shown in the quote.
• Guaranteed savings without analysing your actual payment mix and other charges.