What published fees are actually for
Public rate tables exist to help you compare providers at a glance and build a shortlist. They are marketing and sales materials, not the terms you will be billed under. Use them to narrow the field, then request a written quote for your own volumes and methods before you commit.
- Public fees support early comparison, not contracting.
- Your real rate depends on your own transaction mix.
- Always move from published rate to a written quote.
The three layers of a processing fee
Most card fees stack three parts. Interchange goes to the customer's issuing bank and is set by the card networks, so it is the same for every processor and not negotiable. Scheme assessment goes to the network and is also fixed. The processor markup is the only part the provider controls and the only part you can negotiate. Published headlines rarely show this split.
- Interchange: set by card networks, not negotiable.
- Assessment: set by the network, also fixed.
- Markup: the provider's cut, the part you can discuss.
Why the headline rate is not your rate
The advertised percentage usually covers only the basic card path. Your statement also carries monthly platform fees, chargeback fees, cross-border and currency conversion margins, PCI fees, and minimums. These extras push the real cost well above the headline, which is why the effective rate matters more than the quoted one.
- Monthly and gateway fees sit outside the headline.
- Chargebacks and cross-border flows add cost.
- Currency conversion margins are easy to miss.
What changes your actual cost
Your effective rate moves with factors you control only partly. Rewards and commercial cards cost more interchange than basic debit. Card-present costs less than online. Volume, region, and your business category all shift the total. Two merchants with the same published rate can pay very different amounts.
- Card type: rewards and corporate cards cost more.
- Channel: in-person is cheaper than online.
- Volume and region change the negotiated markup.
How to use published fees responsibly
Treat public pricing as a screen, not a promise. Shortlist two or three providers whose published structure fits you, then ask each for an itemised schedule based on your last few months of transactions. Compare effective rates, not headlines, and watch the contract terms such as auto-renewal and rate guarantees.
- Shortlist on structure, not on the headline number.
- Request an itemised quote for your real volumes.
- Compare effective rates across providers.
What to ask for in writing
Before go-live, get the full fee schedule in writing: processing markup, monthly and per-transaction fees, chargeback and cross-border costs, FX margin, and any minimums. Confirm whether the rate is blended or interchange-plus so you can read your statement. Published pricing is for initial screening only; confirm the provider's official pricing page or a written quote before you go live.
- Ask for every fee line, not just the percentage.
- Confirm blended versus interchange-plus pricing.
- Keep the written quote with the contract.
Questions merchants ask
Why are published payment fees not final?
They are comparison and sales material, not your billed terms. Your real cost depends on your card mix, channel, volume, and extra fees that the headline does not show.
What is interchange and can I negotiate it?
Interchange is the part of each card fee paid to the customer's issuing bank. It is set by the card networks and is the same for every processor, so you cannot negotiate it. You negotiate only the provider's markup.
What is an effective rate?
It is your total fees for a month divided by your total volume that month. It captures the headline plus every extra charge, so it is the fairest number to compare between providers.
Are flat rates cheaper than interchange-plus?
Not always. Flat rates are simple but hide the split and can pad lower-cost transactions. Interchange-plus shows the network cost separately, which is usually clearer once you have real volume.
Why does my real cost exceed the advertised rate?
Because monthly fees, chargebacks, cross-border and currency margins, and minimums sit outside the headline. The effective rate includes them; the advertised rate usually does not.
Should I rely on a provider's published price page?
Only as a screening tool. Published pricing is for initial screening only; confirm the provider's official pricing page or a written quote before you go live, and base the decision on an itemised written schedule.