What are you really paying to accept cards?

Start with the parts of a processing fee

A card payment can involve interchange paid to the issuing bank, card-network charges, and a provider’s processing charges. The way these are presented depends on your pricing agreement.

Stripe’s overview explains how interchange, network assessments and processor charges contribute to payment costs. Your own agreement and statement are the sources for the amounts you actually pay.

Read beyond the transaction rate

Recurring service charges and equipment costs can change the total even when two providers advertise similar rates. Look for separate charges and ask what each covers.

• Monthly account, gateway or software charges.
• Per-transaction charges in addition to a percentage.
• Equipment purchase, rental or lease costs.
• Charges associated with disputes, refunds or account closure.
• Any minimum fees, contract term or early-termination provisions.

Use your effective rate for context

Divide the processing fees you include in your calculation by the corresponding card-sales volume, then multiply by 100. For example, $600 in fees on $20,000 of card sales equals a 3% effective rate.

This is an illustrative example, not a Tillcrest quote or a benchmark. Use the same time period and the same definition of fees when comparing statements. An effective rate describes that month; it does not predict a different mix of transactions.

Compare like with like

Share your sales channels, typical purchase size and card volume when requesting quotes. Then compare the whole proposal using the same assumptions, including recurring charges and equipment.

A lower headline rate is useful only when the full agreement works for your business. Request a written fee schedule and ask which charges can vary.