The True Cost of Your Card Terminal and Payment Processing

If your business accepts credit and debit cards, you're paying processing fees every time a customer swipes, taps, or keys in their card — and those costs can quietly erode your profit margins.

Payment processing costs include interchange fees, assessment fees, and processor markup — and while interchange and assessment fees are industry-set, the markup is usually negotiable; especially with volume.

Understanding Fee Structures: Flat-Rate vs. Interchange-Plus

When comparing offers, you'll encounter two basic pricing structures:

• Flat Rate Pricing:
• Simple and predictable — one all-inclusive percentage + per-transaction fee. Works if you value simplicity.
• Interchange-Plus Pricing:
• Separates the card network's cost (interchange) from your processor's markup. Often the lowest total cost for active businesses.

Pro Tip: Don't be fooled by low headline rates — always ask for full pricing details (including monthly fees, PCI compliance, chargeback fees, early termination fees, and hardware & software costs). Hidden fees can add up.

How to Compare Payment Processing Offers Like a Pro

Here's a step-by-step method to compare offers strategically:

1. Gather your current statements: Look at your monthly volume, average ticket size, and fee breakdowns.
2. Use a payment processing calculator: This helps estimate total cost differences accurately.
3. Identify your card mix: Debit vs. credit vs. rewards cards will affect your total cost.
4. Ask for a full fee disclosure: Don't accept vague rate quotes — insist on itemized fees.
5. Negotiate: Many payment processors are willing to adjust markups, monthly fees, or contract terms depending on your monthly volume.

It pays to stay vigilant with your fees and what you are paying each month.  A lot of statements look like your cell phone bill and are difficult to interpret with all the different fees. Setup a free consultation with someone from our team and we can itemize your statement for you showing you what each fee is associated with and how Dynamic Intelligence can lower your processing costs, often times by thousands annually.

Don't Ignore Hidden and Ongoing Fees

• PCI compliance or non-compliance fees.
• Chargeback fees.
• Batch settlement fees.
• Early termination penalties.
• Gateway or virtual terminal charges.

Even a $0.10 batch fee on 2,000 transactions per month can cost you hundreds annually if you don't account for it.

Smart Strategies to Reduce Terminal Costs

• Consider Dual Pricing: (Cash vs. Card) So customers see payment cost transparency — a strategy offered by Dynamic Intelligence.
• Negotiate Better Rates: with interchange-plus pricing.
• Bundle Hardware and Software: for cost savings.
• Lower Per-Transaction Costs: by optimizing card mix and settlement timing.

Choose a Trusted Merchant Services Partner

The right payment processing partner doesn't just offer competitive rates — they help you:

• Understand your full cost structure.
• Compare multiple processor offers.
• Implement tools that fit your business model (POS, eCommerce, Terminals).
• Maintain PCI Compliance and protect your brand.

At Dynamic Intelligence, we help businesses stop throwing money away on payment processing, optimizing terminal costs, and streamline tech so you keep more revenue where it belongs—in YOUR business.