How to compare credit card processing quotes.

To compare credit card processing quotes fairly, run every quote against the same recent statement and compare the total monthly cost, not the headline rate. Then compare the terms behind the price: whether the markup can rise, what it costs to leave, and what monthly fees come with it.

Most businesses compare quotes by the biggest number on the page. That’s how a business ends up switching for a lower rate and paying more. Here’s a method that holds up.

Step 1: Start from your own statement

Before you ask for quotes, pull your last two or three processing statements. They tell you the numbers every quote should be measured against:

• Monthly card volume in dollars.
• Number of transactions and your average ticket.
• Card mix: how much is debit, rewards credit, business cards and American Express.
• How you take cards: in person with chip or tap, keyed in, online or over the phone.
• Total fees for the month.

Divide total fees by total volume to get your effective rate, the one number that captures everything you paid. Our guide to the effective rate walks through it, and how to read a merchant statement helps you find each figure. Give every processor the same statements and ask them to quote against those exact numbers.

Step 2: Put every quote in the same format

Quotes usually come in one of three pricing formats, and they don’t compare directly:

Format	What the quote shows	What to watch
Flat rate	One percentage plus a per-transaction fee	Simple, but the markup is built in and not shown
Tiered	A low qualified rate plus higher mid- and non-qualified rates	Many cards land in the higher tiers
Interchange-Plus	Interchange at cost plus a stated markup	Easiest to audit; check the markup and monthly fees

A tiered quote with a low qualified rate can look like the lowest price on paper and cost the most once rewards and business cards fall into higher tiers. A flat rate is easy to read but hides how much is markup. Interchange-Plus separates the two, so the markup is a number you can see and hold the processor to. We compare the formats in depth in Interchange-Plus vs. flat rate vs. tiered.

The fair move is to ask each processor for a projected monthly total on your real statement, broken down into interchange and network fees, processor markup and every other fee. Interchange and network fees should be roughly the same on every quote. If they’re not, ask why.

Step 3: Add up every fee, not just the rate

The rate is only part of the cost. Build a simple worksheet like this for each quote, using your own numbers:

Line	Quote A	Quote B	Quote C
Interchange and network fees
Processor markup (percentage and per item)
Monthly or statement fee
PCI or non-compliance fee
Gateway or software fee
Equipment (purchase, rent or lease, per month)
Annual or other fees
Projected monthly total

The bottom line, projected monthly total, is the number to compare. Divide it by your volume and you have each quote’s projected effective rate.

Leave a cell blank only when the processor confirms in writing that the fee doesn’t exist. A blank you filled in yourself because the quote didn’t mention it is a question, not a zero. Ask about it before you finish the comparison.

Also look at timing. Some fees are monthly, some are annual, and some only appear once, such as setup or equipment. Convert them all to a monthly figure so the totals compare fairly. An annual fee divided by twelve still belongs in the total, and so does a lease payment you’ll be making for years.

Step 4: Compare the terms behind the price

Two quotes with the same monthly total can be very different deals. Ask each processor these, and get the answers in writing:

1. Can your markup go up? Interchange changes for everyone. The markup is the processor’s decision. A written promise not to raise it is worth more than a slightly lower starting number.
2. Is there an early termination fee? If so, how much and for how long?
3. Is there a monthly non-compliance fee? Or will they help you complete PCI requirements instead?
4. Does the quote require new equipment? Or will it work with your current POS, gateway or cart?
5. Who answers when you call? A person who knows your account, or a queue?

We list more of these in questions to ask a processor.

Red flags in a quote

• A quote that shows only a rate, with no projected total on your statement.
• A very low qualified rate with no mention of mid- or non-qualified rates.
• Fees described as “standard” without a dollar amount.
• Pricing that depends on a long equipment lease.
• Pressure to sign today, or a rate that’s only good this week.

None of these mean a processor is dishonest. They mean you don’t yet have what you need to compare. Ask for the missing numbers before you decide.

What PayZoom does

PayZoom quotes against your actual statement. Our free statement analysis line-items every fee you’re paying now, separates interchange from your current processor’s markup, and shows what Interchange-Plus pricing would look like on the same numbers. If your current rate is fair, we’ll tell you.

Our margin is shown on its own line, and for Interchange-Plus merchants it never increases, in writing. We don’t charge early termination fees or non-compliance fees, and a real person answers when you call. Send us a recent statement and you’ll have a quote you can compare line for line with any other.