How to compare credit card processing fees before renewing an agreement

Understand interchange-plus pricing

With interchange-plus pricing, the provider’s processing charge is added to underlying interchange and applicable payment-network fees.

For comparable transactions under the same network program, the underlying fee schedules provide a common starting point. Ask each provider to separate those costs from its own markup and confirm how they are passed through.

Interchange can vary with the card, transaction and applicable merchant program. Compare proposals using the same payment activity and assumptions, rather than treating every transaction as having one universal cost.

Other pricing models exist, so first confirm whether each proposal uses interchange-plus, flat-rate or another structure.

Compare the processor’s own charges

Once underlying costs are clearly identified, examine the charges the provider controls. These may include percentage markups, per-transaction processing fees and recurring account or service charges.

Ask what every fee covers. If a proposal lists an assessment or switch fee, clarify whether it is an underlying network cost, a provider charge or a combination. Labels alone may not tell the whole story.

Pay close attention to monthly and equipment fees

Request a complete schedule of monthly charges, including terminal and PIN-pad rentals, other payment devices, account services and any applicable minimum fees.

For equipment, compare buying and renting over the same period. Ask about upfront costs, replacement arrangements and commitments attached to the equipment.

For a business with multiple locations, identify which charges apply per business, per location and per device. A small recurring difference can become significant across a larger operation.

Include e-commerce and gateway charges

If you accept payments through your website, review online costs separately from in-store costs.

Alongside applicable interchange, network and processing charges, an online arrangement may include gateway access fees, monthly gateway charges or additional transaction-based charges. Clarify which provider bills each item and whether it is included in the proposal.

Ask whether gateway and related service charges come from the processor or another service provider. Do not assume they are interchange or card-network assessments simply because they appear on the same statement.

Consider currency services and potential revenue sharing

Some processors offer dynamic currency conversion (DCC), which lets eligible international cardholders choose to pay in their home currency. For example, a visitor from the United States may be offered a choice between Canadian and US dollars when paying in Canada.

For online sales, multi-currency pricing lets a merchant display and accept prices in supported foreign currencies. The available currencies, conversion arrangements and settlement terms depend on the provider’s service.

These services may offer merchant revenue sharing under the processor’s agreement. Assess the opportunity using your international customer activity, the applicable fees and the revenue-sharing terms. Potential income is not guaranteed, and customers should have a clear currency choice with transparent exchange rates and conversion charges.

Ask about tokenization and payment-data protection

Tokenization replaces a card number with a substitute value, or token, for supported payment uses. A processor’s tokenization service can help reduce the exposure of sensitive card details, including in stored-card and recurring-payment arrangements.

Ask which sales channels and systems the service supports, what integration and fees are required, and what happens to stored payment credentials if you change providers. Tokenization is one part of protecting payment data; it does not automatically remove all security or PCI compliance responsibilities.

Compare the total using your own activity

Gather recent statements, existing agreements, equipment details and competing proposals. Use the same transaction volumes, card mix, locations and sales channels for each comparison.

Review the projected total cost alongside settlement timing, support, renewal terms and the practical implications of changing providers. The goal is a clear commercial comparison that helps you decide what to negotiate and whether a change makes sense.