A processing quote can look attractive while leaving you unsure what the full monthly bill will be. Avoiding surprises starts with comparing the written proposal, the agreement and your actual statements.
Not every unfamiliar charge is improper, and a low advertised percentage does not tell you the total cost. This checklist helps you identify fees that need an explanation and compare offers on the same basis.
Start with the documents, not the sales pitch
Gather three recent merchant statements, your current agreement, any pricing schedules and notices of changes. Add separate gateway, software and equipment bills. If you are evaluating a new provider, ask for the complete proposed fee schedule and all agreements you would need to sign.
Keep a short list of questions as you review. For each unfamiliar fee, record its name, the amount charged, the service it covers and where it appears in the written terms.
Request a Free Merchant Analysis if you want Platinum to help organize the review.
Check these five groups of charges
1. Processing and per-transaction fees
Confirm the percentage charges and the fees for sales, authorizations, batches, refunds or other transaction events. Ask which events are billable. For example, the number of authorization attempts can differ from the number of completed sales.
With interchange-plus pricing, review the markup and the network-related costs as well as any other fees. With flat-rate or tiered pricing, ask which transactions qualify for each rate. None of these labels, by itself, proves that an offer is cheaper or that a fee is hidden.
2. Recurring account fees
Look for monthly account, statement, gateway, minimum and support charges, plus annual fees. Confirm how a monthly minimum is calculated: the agreement may define which charges count toward satisfying it.
Distinguish a PCI program or service fee from a noncompliance fee. Ask what each charge covers and what actions, if any, could change it. Completing a questionnaire does not automatically remove every fee with “PCI” in its name.
3. Gateway and software costs
Online payments, virtual terminals, stored-payment features and invoicing may be billed separately from the merchant account. Ask which features are included and which require another subscription or transaction charge.
If your workflow needs an integration, get the implementation, maintenance and support costs in writing. Do not assume that every API, accounting connection or recurring-billing feature is included in a gateway plan.
4. Equipment commitments
Clarify whether a terminal is purchased, rented, leased or provided subject to conditions. Ask who owns it, who pays for replacement or shipping, and what happens when processing ends. Review any separate equipment agreement as carefully as the processing agreement.
A “free terminal” offer needs an explanation of its conditions. It is not automatically a bad offer, but the headline should not substitute for the written terms.
5. Contract and exit costs
Identify the term, renewal process, cancellation notice requirements and any early termination provisions. Ask whether a separate software or equipment contract continues after the processing account closes.
If the amount due on cancellation depends on a formula, ask the provider to show a worked example. Have unclear legal obligations reviewed before signing.
Compare the bill without double-counting
Use your statement’s total fees as a starting point and reconcile the detail to that total. Do not add a summary line and then add the same underlying charges a second time. Separate processing fees from returned sale amounts, reserves and other movements of money.
Our guide to calculating credit card processing costs explains the effective-rate formula and how to handle recurring and unusual items.
A higher effective rate is a reason to investigate, not proof of overcharging. Changes in card mix, average ticket, payment method or volume can change the result even when your agreement is unchanged.
Ask for a written, side-by-side proposal
Give each provider the same sales volume, transaction count and payment mix. Request a breakdown that includes processing, monthly fees, software and equipment. List assumptions and excluded items beside the estimate.
- Which fees are fixed, and which vary with transactions or volume?
- What conditions could change the pricing?
- Which charges are billed by a different company?
- What will implementation require?
- What support is included, and who handles problems?
- What would it cost to leave?
When a charge seems inconsistent with the agreement, ask the provider to explain it and identify the applicable term. Keep the response and any promised correction in writing. Do not assume a questioned fee will be refunded or waived.
Make the next step a statement review
Platinum helps business owners understand their current setup and evaluate payment processing options. For firms that bill by invoice, our professional services payment solutions are a useful starting point.
Request a Free Merchant Analysis to review the fees you are paying and discuss options suited to your business. Savings depend on your current terms and the alternatives available.
Frequently asked questions
Is every fee beyond the quoted percentage a hidden fee?
No. A proposal may properly include separate transaction, monthly or software fees. The important questions are whether they were disclosed, whether the agreement supports them and whether they are applied correctly.
Does interchange-plus guarantee the lowest cost?
No. Compare the markup, recurring charges, card mix and included services. The pricing model helps explain the structure, but you still need the full numbers.
What should I send for a fee review?
Start with recent statements and the relevant pricing terms. Use the submission process Platinum provides and avoid sending full card numbers or other unnecessary sensitive information.
