Questions to Ask Before Choosing a Processor

Switching processors is a pain, so most owners only do it after they have been burned. You can skip that whole experience by asking ten questions up front. A good provider answers all of them plainly. A bad one dodges, and the dodging is the answer.

1. Is this flat-rate or interchange-plus? You need the structure, not just the number. They're priced completely differently, and "2.6%" means nothing without knowing which one it is.
2. What exactly is your markup? On interchange-plus, an honest provider states their markup out loud. If they won't, assume it's higher than it should be.
3. What will my effective rate be on my real statement? Total fees divided by total volume. Make them estimate it from your actual numbers, not a hypothetical. This is the only figure that compares apples to apples.
4. List every monthly and annual fee. Account fee, PCI fee, statement fee, gateway fee, batch fee. A low rate stacked with monthly fees can cost more than a slightly higher rate with none.
5. Is there a PCI non-compliance fee, and how do I avoid it? Many processors quietly charge this if you skip a security questionnaire. It's avoidable, but only if someone tells you it exists.
6. Is there a contract, and what does it cost to leave? Plenty of processors lock merchants into multi-year deals with early-termination penalties. Get the exit number before you sign, not after.
7. Do I own the equipment or lease it? Leasing a card terminal is one of the oldest traps in the business, small monthly payments that add up to many times the price of just buying the device. Owning is almost always the right call.
8. When my reader dies on a Saturday, who picks up? A terminal down during your rush is a genuine emergency. Ask if you reach a real person, and how fast. Slow or offshore support turns a small glitch into a lost day.
9. How fast do deposits hit my account? Next-day funding is standard. Anything slower deserves a "why."
10. Will you put your quote next to my current statement, line by line, and tell me if I am already getting a fair deal? This is the one that separates a partner from a salesperson. Anyone willing to talk you out of switching when you already have a good rate is someone worth trusting with the times you don't.

That last one is our whole approach. Send us your statement, we'll mark it up honestly, and if you're already in good shape, we'll say so.