Every card sale is split three ways: the card network and issuing bank take interchange, the network takes a small assessment, and the processor adds a markup. Quotes differ in how they bundle these. To compare fairly, ask for the effective rate on a real month of your own statements.
Three layers
When a guest taps a card, three parties take a share.
Interchange goes to the bank that issued the guest's card. It varies by card type, such as debit or rewards, and by how the card is used, in person or online. The networks publish interchange schedules, and processors cannot change them.
Assessments go to the card network itself. They are small and the same for every merchant.
Processor markup is what the company that moves the money keeps. This is the part you can negotiate, and the part that differs most between providers.
Why quotes are hard to compare
A flat-rate quote gives one percentage for every sale. An interchange-plus quote passes the first two layers through and adds a stated markup. Some quotes also add monthly fees, statement fees, a fee for chargebacks and fees for a terminal or gateway. A low headline rate with a high monthly fee can cost more than a higher rate with none.
Tiered quotes, which sort sales into qualified, mid-qualified and non-qualified buckets, are the hardest to read. Ask where each type of sale falls.
Mix matters
Debit cards cost less than rewards credit cards in most cases. Online and keyed-in transactions cost more than a card tapped in person. A takeout-heavy restaurant with many phone-in or online orders has a different mix than a bar. So your best structure depends on your own sales.
How to compare
Gather three months of statements. For each quote, compute the effective rate: total fees paid divided by total card sales. Do it for the quote by applying its structure to your volume. Compare effective rates, not headlines.
What to ask
- Is this flat, interchange-plus or tiered?
- What are all the monthly and annual fees?
- What is the chargeback fee?
- Is there an early termination fee?
- Can the markup change, and with what notice?
- Who owns the terminals?
Where Zorveta One stands
Use your own processor, or use Zorveta payments at one low cost. Fees are itemized so you can compare. Contact us for pricing. For the bigger picture, read interchange-plus vs flat rate and visit the payments page.