Choosing a Payment Processor
How to evaluate processors on pricing, features, support, and contract terms.
Start With Business Requirements
Document your monthly volume, average transaction, card-present and online mix, recurring payments, refund frequency, POS or e-commerce platform, and anticipated growth. A processor is only a fit when its approved features support your actual workflow.
What Matters Most
When choosing a processor, look beyond the headline rate. Consider total cost including interchange fees, assessments, monthly fees, and ancillary charges. Also evaluate the features you need — POS integration, recurring billing, virtual terminal, and supported payment methods.
Pricing Models
Processors typically offer flat-rate, interchange-plus, or membership pricing. Each model suits different business profiles. Interchange-plus is often more transparent for growing businesses, while flat-rate offers simplicity for low-volume merchants.
Compare Real Monthly Costs
Request written pricing and estimate total cost at the same sales volume and transaction count. Include interchange or bundled rates, per-item charges, monthly fees, gateway fees, PCI-related charges, equipment costs, and any minimums. Divide total monthly fees by card volume to compare effective rates; do not rely on a headline percentage.
Confirm Compatibility, Funding and Security
Verify your exact software version, gateway, terminal model, payment methods, deposit cutoffs, and settlement bank requirements. Ask which party handles PCI responsibilities, fraud controls, disputes, outages, and technical support. Availability depends on the approved setup.
Contract and Support
Review contract length, early termination fees, and equipment ownership. Equally important is the quality of support — whether you get a dedicated representative, 24/7 availability, and responsive issue resolution.
Use a Decision Checklist
For each offer, record total estimated monthly cost, funding schedule, equipment ownership, contract term, cancellation fees, reserve terms, support escalation process, and implementation timeline. Ask for unclear terms in writing before committing.
Frequently Asked Questions
Is the lowest rate always the best choice?
Not necessarily. A low headline rate can be offset by hidden fees, poor support, or missing features. Evaluate the total cost of processing and the overall value, including reliability and service quality.
What should I ask before signing?
Ask about pricing model, all fees (monthly, per-transaction, chargeback, PCI), contract length, early termination terms, equipment ownership, and support availability. ONKORE offers a free statement review to help you compare.
Compare your payment processing options
Discuss your business requirements and review pricing with ONKORE.
- Expert guidance
- Transparent pricing
- Terms reviewed upfront