Processing cost guide
Lowest Cost Credit Card Processing for Your Business
The lowest cost credit card processing for your business depends on your card mix, ticket size, volume and how you take cards. There is no single lowest cost for every business. Compare the full bill rather than a headline rate.
Short answer
How do I compare total processing cost?
Start with a complete statement and divide total processing fees by total card sales to calculate your effective rate. Then compare quotes using the same sales activity. Include fixed monthly charges, transaction charges and extra services. A low advertised rate alone does not show what your business would actually pay.
Understand the pricing model
Interchange plus separates underlying card transaction costs from the processor’s added charges. Ask which charges are passed through and which belong to the provider. You still need to review monthly fees and other costs outside the quoted markup.
Flat rate pricing groups covered transactions under a stated pricing structure. Check whether online, manually entered or other transactions have different terms. Ask what is excluded from that structure and billed separately.
Tiered pricing groups transactions into categories. Ask what puts a payment into each category. Watch for non qualified surcharges, which can make transactions cost more than the advertised starting rate. Request an explanation using your actual card mix.
Calculate your effective rate from the statement
Find total card sales for the statement period. Then identify all processing fees for that same period, including fees billed separately. Divide those total fees by total card sales. That ratio is your effective rate.
Keep the method consistent when comparing periods or providers. Do not use the net bank deposit as your sales total. Ask how refunds, chargebacks and unusual adjustments appear so you can distinguish regular costs from exceptional activity.
Look beyond a low advertised rate
Fixed monthly fees matter more when sales volume is small because those charges are spread across fewer sales. Look for account fees, gateway charges, software subscriptions, minimums and required services. Check for annual charges outside the statement you are reviewing.
A low advertised rate paired with high monthly fees may not fit your business. Compare quotes against the same volume, ticket size, card mix and payment methods. Ask each provider to explain assumptions rather than accepting a projected total alone.
Compare terms and payment options
Check equipment arrangements, contract length, cancellation terms and support alongside processing charges. Ask which costs can change and whether a quote includes every service you need. Ledger Line POS refers businesses to providers and does not set their prices.
Cash discount is one option to discuss, not a universal answer. Review our related guide. Rules vary by state and can change. Check current state law and the card network rules through your processor before deciding how to present customer pricing.
Common questions
Still not sure? Ask us directly.
Is the lowest quoted rate always the lowest cost?
No. Monthly charges, transaction categories and required services can change the total. Compare the complete quote using the same business activity.
Why does ticket size matter?
A per transaction charge applies each time you take a payment. Smaller tickets can make that charge a larger part of the cost relative to sales.
Can a statement review help me compare quotes?
Yes. For a free statement review, upload one recent statement on the contact page. We read every line and explain each fee before discussing proposed terms.
Should I compare online and in person sales together?
Include both in the total, but also check their separate pricing. A quote based only on in person activity may not represent a business with substantial online orders.
Send one statement. We read every line, free.
Compare the full cost on your statement.
Send one recent statement. A person reads every line and explains each fee in plain English. Free, no obligation.