Where your processing money actually goes
Every processing statement is three things stacked together, and only one of them is negotiable. Once you can see which is which, a sales call becomes a much shorter conversation.
The three layers on every statement
Interchange, which nobody can discount
Set by Visa and Mastercard, paid to the bank that issued your customer's card. Identical for every processor on earth. Card present restaurant transactions typically blend near 1.95% plus 10 cents, and it moves with the cards your guests carry. Any rep who claims to beat interchange is describing something else.
Assessments, which are also fixed
The card networks' own cut, a small fraction of a percent. Also identical everywhere. Between them, interchange and assessments are most of your bill and none of it is a choice.
The processor's markup, which is the whole negotiation
This is the only layer anyone controls. On interchange plus pricing it is stated as a number you can see. On flat rate or tiered pricing it is blended into one percentage, which is convenient for the seller and expensive for you.
Why flat rate looks simpler and usually is not
A flat rate is one number, which feels honest. What it hides is that your actual interchange varies by card, and on the cards where interchange is cheap the processor simply keeps the difference. You never see it, because there is nothing on the statement to see.
Interchange plus shows interchange at cost and the markup separately. It looks more complicated and it is the reason you can tell whether you are being treated fairly. Slide the markup in our calculator and you can watch what a quarter point does over a year.
Four questions that end a vague sales call
What is my effective rate, in writing?
Total cost divided by total volume. If a rep will not commit to it, you have learned what you needed to.
Is this interchange plus, tiered, or flat?
If the answer takes more than one sentence, it is tiered.
What is the contract length and the early termination fee?
Ask separately about the hardware lease, which is frequently a different agreement with a different end date.
What annual fees exist?
Program fees, regulatory fees, PCI fees and yearly escalators. Ours are a $250 annual program fee per device plus an annual regulatory fee, and they are in our quotes.
Questions owners ask
What is a good effective rate for a restaurant?
It depends heavily on your average ticket, because fixed per transaction fees hit small tickets hardest. A full service restaurant with a healthy average ticket should be able to see an effective rate meaningfully below 3%. A coffee shop at a $5 average will be higher no matter who processes it, and any rep promising otherwise is not being straight with you.
Can I pass card fees to customers?
Cash discounting is legal in all fifty states. Surcharging is legal in most but is capped by card network rules, cannot exceed your cost of acceptance, and requires written notice to the networks plus clear disclosure at the point of sale and on the receipt. Debit surcharging is prohibited federally. Get the specific program in writing.
Have your own numbers checked
Send last month's statement. We read it with you, free, and tell you straight whether we are the ones to fix it.
Send your numbers
About a minute. It goes straight to the Equip team.
It reaches Judd Alsup and the Equip team. If we have a crew near you, that is who calls. If we do not, Judd handles it himself. We never ask for card or bank details on this site.