What to Check Before Choosing a Payment Processor
Rates are only part of the picture. Monthly minimums, contract length and onboarding effort can matter just as much. Here is a plain checklist to use before you sign.
Start with the total cost, not the headline rate
A low advertised rate does not tell you what you will pay. Ask for a written quote and compare it against a recent statement. Our guide on calculating your effective rate shows how.
1. Monthly minimums
Some agreements require you to pay a minimum amount each month. If your processing fees fall below it, you pay the difference.
- Ask whether there is a monthly minimum, and how much it is.
- Ask what happens in a slow season.
- Ask about any other recurring fees, such as statement, gateway or compliance fees.
2. Contract length
- Term. How long is the initial commitment?
- Renewal. Does the agreement renew automatically? For how long?
- Notice. How much notice do you need to give, and in what form?
- Early termination fee. Is there one, and how is it calculated?
- Equipment. If you lease terminals, who owns them at the end, and can the lease be cancelled?
Read these terms in the agreement itself, not only in the sales material. See our switching checklist if you already have a processor.
3. Onboarding effort
Ask how long it takes to go live and what you will need to do.
- Which documents are needed to apply?
- Will your current terminals, POS or website work, or do you need new equipment or development work?
- Who sets up the account and tests payments?
- Who do you contact if something goes wrong in the first weeks?
4. Pricing model and fees you pass through
Find out whether the price is flat, interchange-plus or tiered, and which fees are passed through at cost. Our guide to network and assessment fees explains one common pass-through.
5. Funding and support
- How many days until sales reach your bank account?
- Are support hours and channels clear?
- How are chargebacks handled and what do they cost?
A simple scorecard
| Question | What to write down | |----------|--------------------| | Monthly minimum | Amount, or none | | Contract term and renewal | Months, auto-renew yes or no | | Early termination fee | Amount, or none | | Time to go live | Days | | Equipment needed | Own, lease or buy | | Funding time | Days |
Want a second opinion?
Upload a recent statement for a free statement review, or see ONKORE pricing. For ONKORE, see your merchant agreement for the terms that apply to your account.
