Step 1: What is my current effective rate?
Divide last month's total fees by total card volume. That's your effective rate, your baseline. Without it you can't tell whether a new offer is actually better. Use the effective rate calculator, and compare your number against typical ranges.
Step 2: Switch to interchange-plus pricing
If you're on tiered pricing, switching to interchange-plus is often the single biggest saving. You'll pay true cost plus a disclosed markup, rather than having transactions pushed into expensive tiers. If you're on flat-rate and process more than about $10,000–$20,000 a month, interchange-plus is often cheaper too. Learn more in our pricing model guide.
Step 3: Negotiate your markup
On interchange-plus, the markup (e.g. 0.30% + 10¢) is negotiable. Competing quotes are your best leverage. Ask current and prospective providers for their best markup in writing, and ask whether it's locked for a set period.
Step 4: Remove junk fees
Review your statement for fees you can drop or reduce:
- Statement fees, monthly "service" fees and annual fees.
- Minimum monthly fees.
- Batch fees and gateway fees you don't use.
- Vague "regulatory" or "compliance" fees.
Many providers will waive some of these if asked, especially if you have a competing offer.
Step 5: Stay PCI compliant
PCI non-compliance fees often run $20–$100+ per month. Completing your annual Self-Assessment Questionnaire (SAQ) and any required scans usually removes them. Ask your provider for help; many offer guided tools.
Step 6: Avoid downgrades
Transactions that don't meet interchange requirements cost more. To avoid downgrades:
- Tap or dip cards instead of keying them in.
- Batch out daily, within 24 hours.
- Collect ZIP code (AVS) and CVV on keyed and online transactions.
- Pass Level 2/3 data for business, corporate and government cards.
- Keep tip adjustments within network tolerances.
Step 7: Consider a cash discount or surcharge program
A compliant cash discount program or credit card surcharge can offset most processing costs. They aren't right for every business, but for thin-margin local businesses they often save more than any rate change.
Step 8: Encourage lower-cost payment methods
- ACH / bank transfer for large B2B invoices: usually far cheaper than cards.
- PIN debit where supported, which can cost less than signature debit or credit.
- Credit card minimums of up to $10 are permitted for credit cards (not debit) in the US.
Step 9: Buy hardware instead of leasing
Equipment leases are often non-cancellable and can cost several times the hardware's value over 36–60 months. Buying outright, or using free-placement programs without long contracts, usually saves money.
Step 10: Watch for rate increases
Processors sometimes raise markups or add fees with notice buried in the statement's messages section. Review your statement every month, or at least every quarter, and recalculate your effective rate.
Step 11: Reduce chargebacks
Each chargeback brings a fee (often $15–$35) plus the lost sale, and high ratios can raise your rates or put your account at risk. Use clear billing descriptors, keep receipts and delivery proof, respond quickly to customer complaints, and use fraud tools online.
Step 12: Compare providers regularly
Pricing drifts over time. Comparing providers every year or two keeps your current processor honest and often uncovers meaningful savings. You can request a free comparison in about 60 seconds.
How much could these steps save?
| Change | Typical impact | Example at $50k/month |
|---|---|---|
| Tiered → interchange-plus | 0.3–0.8 pts lower effective rate | $150–$400/month |
| Remove PCI non-compliance fee | $20–$100/month | $20–$100/month |
| Drop junk monthly fees | $10–$75/month | $10–$75/month |
| Avoid downgrades | 0.05–0.3 pts | $25–$150/month |
| Cash discount program | Offsets most card cost | Up to ~$1,500/month |
These ranges are illustrative estimates. Actual savings depend on your current pricing, card mix and business type. Get a personalized estimate with the savings calculator.
What should I avoid when switching processors?
- Long contracts with automatic renewal and high early termination fees.
- "Liquidated damages" clauses that charge you the provider's expected future profits.
- Equipment leases bundled into the deal.
- Teaser rates that rise after a few months.
- Quotes that only list a "qualified" rate.
Industry-specific tips
Every industry has its own levers: tip handling for restaurants, Level 2/3 data for auto shops and B2B firms, and HSA/FSA acceptance for medical and dental practices. Browse all industries.