Compare the total, then examine what creates it
A lower percentage is not enough to choose a processing proposal. The useful comparison asks what each offer would cost for the same business, in the same month, with the same payment activity. Begin with three complete statements and a list of separately billed software and equipment. Give each provider the same information and ask for a line-by-line estimate with exclusions clearly identified.
Keep the original proposal beside the estimate. A savings calculation is not a contract: a fee can disappear from the illustration while remaining in the agreement. If a charge is described as waived, find the written waiver and its duration. If the provider cannot explain a line item, mark it unresolved rather than assuming it is zero.
Know what the pricing label means
Flat-rate pricing generally bundles costs into a quoted percentage, often with a fixed amount per transaction. Different payment channels may have different rates. Interchange-plus separates underlying interchange from a provider markup; confirm how network assessments and other charges appear. Tiered pricing places transactions into pricing categories. Ask which of your transactions would fall into each category, not just the price of the lowest tier.
Visa describes interchange as a transfer between acquiring and issuing banks, distinct from the merchant discount negotiated with the merchant’s financial institution. That distinction matters: a network’s published interchange schedule is not a complete merchant quote. None of these pricing labels, by itself, establishes the cheapest or most suitable offer.
Average ticket changes the math
Here is an illustrative comparison, not an available offer. Plan A charges 2.60% plus $0.10 per transaction. Plan B charges 2.40% plus $0.25. Assume no other fees and identical eligibility for every transaction. At $50,000 in monthly sales across 2,500 transactions, A costs $1,550 and B costs $1,825. The lower percentage costs $275 more because of the per-transaction charge.
At the same sales volume across 500 transactions, A costs $1,350 and B costs $1,325. Under these limited assumptions, the two formulas meet at a $75 average ticket: the $0.15 difference in transaction fees equals 0.20% of $75. Real proposals need a broader comparison, but this example shows why volume without transaction count is incomplete.
Build one comparison sheet
Use a column for your current arrangement and one for each proposal. Keep transaction costs separate from recurring account costs and one-time switching expenses. Label uncertain estimates. A helpful provider should be able to explain both the normal month and the exceptions.
- Payment activity: settled card volume, transaction count, refunds, and the split between in-person, keyed, and online payments.
- Transaction pricing: percentage charges, per-item charges, applicable tiers or markups, and any channel-specific pricing.
- Recurring costs: account, gateway, software, equipment, minimums, and annual fees allocated consistently for comparison.
- Exceptions: dispute fees, refund treatment, expedited funding, replacement equipment, and support charges.
- Commitment: contract length, renewal notice, cancellation terms, equipment ownership, and any separate lease.
Verify the first full statement after a change
Save the accepted pricing schedule and compare it with the first complete statement. Use the actual card mix and transaction count rather than expecting the estimate to match every dollar. Separate explainable activity changes from unexpected fees. Ask about differences while the proposal and onboarding conversation are still easy to retrieve.
The decision should also account for checkout reliability, usable reports, refund handling, and access to support. A small projected cost reduction may not justify a system that adds manual work to every sale. Document the tradeoff instead of forcing every decision into a single percentage.
This guide provides general business information. Contract terms, payment rules, taxes, and legal requirements vary; review decisions with the appropriate qualified adviser.
David founded BlueFinch Advisors, a merchant-services business. This is affiliated educational content, not an independent provider ranking. Examples are illustrative, not customer results or rate offers.
Sources and preparation
Prepared with AI assistance using the primary references below, checked September 6, 2026. Provider documentation describes that provider’s services; confirm your own account’s terms before applying a specific procedure.