Questions to ask a credit card processor before you sign.

The most important questions to ask a credit card processor are how their pricing works, whether their markup can go up after you sign, and what fees apply to leave or to stay compliant. Ask about equipment, support and funding too, and get every answer in writing.

Below are the questions grouped by topic, with a short note on what a clear answer looks like. Bring a recent processing statement to the conversation. It turns general answers into specific ones.

Pricing questions

These questions tell you what you’ll pay and whether you’ll be able to check it.

1. What pricing model do you use: Interchange-Plus, tiered or flat rate? A clear answer names the model and explains how your statement will show it.
2. What is your markup above interchange, as a percentage and a per-transaction fee? With Interchange-Plus, this should be two specific numbers.
3. Can you quote against my actual statement? A projected monthly total on your real volume is worth more than any rate sheet.
4. What monthly, annual and per-item fees apply? Ask for every one by name and amount, including statement, gateway, batch and PCI-related fees.
5. Do you charge a monthly minimum? If your volume drops in a slow month, you’ll want to know.

If you’re comparing several offers, our guide on how to compare processing quotes shows how to line them up side by side.

Questions about rate increases and fees later

Many businesses don’t have a pricing problem when they sign. They have one a year or two later. These questions are about what happens after the first statement.

The pattern is common enough to plan for. A rate starts low, then new line items appear or an existing fee grows a little at a time. Each change looks small on its own, so it goes unnoticed. After a couple of years, the effective rate is well above what was quoted. Asking these questions up front, and keeping the written answers, gives you something to point to if your statement starts to drift.

1. Can your markup increase during my agreement? The strongest answer is no, in writing. Interchange can change for everyone, but the markup is the processor’s choice.
2. How will you notify me of any change? Look for a clear, direct notice, not a line buried in a statement message.
3. Is there an early termination fee? If there is, ask the amount, how it’s calculated and how long it applies. See early termination fees explained.
4. Do you charge a PCI non-compliance fee? Some processors add a monthly fee if a form isn’t on file. Others help you complete it. See non-compliance fees explained.

Equipment and setup questions

• Can I keep my current POS, terminal, gateway or shopping cart? A processor that fits your existing setup saves you the cost and disruption of replacing it.
• If I need new equipment, can I buy it outright? Ask for purchase, rental and lease prices, and read any lease separately. Leases can outlast the processing agreement.
• Do you sell your own proprietary POS? Proprietary systems can make it harder to switch processors later.
• What happens to my equipment if I leave? Ask whether it will work with another processor.
• Can you support surcharging, cash discount or Level II and Level III data if I need it later?

Support, compliance and funding questions

Question	What a clear answer sounds like
Who answers when I call?	A named team or person, in-house, who can see my account
Is support outsourced?	A direct yes or no
How do you help with PCI compliance?	Specific help completing the questionnaire and scans, not just a fee
When will deposits reach my bank?	A typical timeline for my setup and batch time
How do you handle chargebacks?	How I am notified and how I respond
How long have you been in business?	A year founded and the kinds of businesses served

Funding timelines depend on batch times, banks and setup. Our guide to when card payments deposit explains what affects the timing, so you know what to ask.

How to use the answers

Write down each processor’s answers on the same page. A few patterns are worth noticing:

• Answers that are specific numbers are easier to hold a processor to than words like “competitive” or “standard”.
• Promises that appear in the agreement or a signed pricing schedule carry weight. Promises only made out loud are harder to rely on.
• If a processor is happy to look at your statement and tell you your current deal is fine, that’s a good sign about how they’ll treat you later.

Don’t skip a question because the salesperson seems trustworthy. The person who sells you the account may not be the person who handles it later, and the agreement is what both sides will rely on. If you decide to move, our switching processors checklist covers the steps so nothing gets missed during the changeover.

What PayZoom does

Here’s how PayZoom answers the questions above. We recommend Interchange-Plus pricing, with our margin on its own line. For Interchange-Plus merchants, that margin never increases, and that’s in writing. We don’t charge early termination fees. We don’t charge non-compliance fees. We help you meet Visa and Mastercard rules and stay PCI compliant instead.

We’re platform-agnostic and don’t sell proprietary POS, so we fit your current POS, gateway or cart. Support is never outsourced, and a real person answers when you call 866.242.4325. We’ve been doing this since 2006 for businesses in nearly every U.S. state. Bring us a recent statement for a free statement analysis, and ask us every question on this page.