How we calculate your savings (the methodology)
Every “$300–$700/mo savings” figure on this site comes from this method. No marketing math.
Most payment processors throw out savings claims with no math behind them — “save up to 40%”, “industry‑leading rates”, “guaranteed savings.” We don’t. When we tell a merchant they’ll save $300–$700 a month, that number comes from a four‑step process that anyone with a calculator and a statement can verify. This page walks through that process, shows a worked example with real dollar amounts, and explains exactly what we include and exclude from the calculation.
If we ever quote you a savings figure that you can’t trace back to the math on this page, push back. We owe you the reasoning in writing.
The four‑step analysis
Same process for every quote. No shortcuts.
Statement collection
We ask for your latest monthly merchant statement — ideally the last three months so we can spot seasonal swings. We read every line: interchange charges, assessments, processor markup, monthly account fees, PCI fees, batch fees, statement fees, gateway fees, and any “non‑qualified” surcharges. Nothing gets ignored or rolled into a single bucket. If your processor uses bundled or tiered pricing, this is usually the first place we find $100–$300/mo in padding that’s easy to remove.
Effective rate calculation
We use one formula, the same one any auditor would use: total fees ÷ total card volume = effective rate. If your statement shows $850 in fees on $25,000 of card sales, your effective rate is 3.40% — no matter what your advertised swipe rate says. The effective rate is the only number that matters because it captures everything your current processor is taking from you.
Side‑by‑side projection
We project your same monthly volume against two alternatives: Interchange‑Plus at our typical 2.10% blended rate (true interchange of ~1.85% plus our 0.25% transparent markup) and Zero‑Fee, where the cardholder covers roughly 3% at checkout and you net your full ticket. Both numbers get compared against your current effective rate, not against your advertised rate. The savings figure is the delta — that’s it.
Conservative estimation
We always use mid‑range assumptions, never best‑case. Real interchange varies by card type, entry method, and MCC. If you’re a restaurant with a high debit‑card mix, your real Interchange‑Plus rate might be 1.85%; if you’re an e‑commerce shop with rewards cards, it might be 2.35%. We quote 2.10% because that’s the median for the merchants we work with — not the lowest possible number we could sell you on.
The math, worked end‑to‑end
A sample merchant. Real numbers. Every step shown.
Sample merchant
A typical retail boutique
Current bill (their statement)
$850/mo — a 3.40% effective rate
Statement total fees: $850. Card volume: $25,000. Effective rate = $850 ÷ $25,000 = 3.40%. Their advertised rate was 2.6% — the real number is 80 basis points higher because of non‑qualified surcharges, a $25 monthly account fee, a $99/year PCI fee amortized monthly, and three different assessment lines.
Monthly cost to merchant
$850
Option A — Interchange‑Plus
$525/mo — saves $325
$25,000 × 0.0210 = $525. Annual savings: $3,900.
Option B — Zero‑Fee
$820/mo retained — saves $820
Previously paid $850 in fees, now pay ~$30 in account fees. Annual savings: $9,840.
For this sample merchant, the annual savings range is $3,900 (Interchange‑Plus) to $9,840 (Zero‑Fee). Across the range of merchants we onboard (volumes $10K–$100K/mo, mixed card types, mixed industries), the typical monthly savings lands at $300–$700/mo. That’s the range you’ll see quoted on our pricing page, our landing pages, and our calculator — and it’s derived from this exact math.
What we exclude from the savings number
We could inflate the headline by adding these in. We don’t.
One‑time setup costs
Usually $0 with us. Occasionally there’s a small fee from card networks for new MIDs — we disclose it before you sign. We don’t bury it inside “savings” either way.
Hardware costs if upgrading
Often free with us (Clover, Dejavoo, PAX). When hardware costs apply, we quote it separately so you can decide. Hardware is never amortized into the savings number to make a deal look better.
PCI compliance & cancellation fees
Your current processor probably charges $99–$199/year for PCI compliance and may charge $250–$500 to cancel. Those are real savings when you switch — but we don’t add them to the quoted number. If they apply, we mention them as a bonus, not a headline.
Why savings vary so much between merchants
Four variables move the number more than anything else.
Card mix
AMEX‑heavy merchants save the most when switching. AMEX interchange is brutal — often 2.5–3.5% before any processor markup. Visa/Mastercard‑heavy merchants save less because base interchange is already lower (often 1.5–2.2%).
Card‑present vs card‑not‑present
Keyed and online transactions cost 0.3–0.7% more in interchange than swiped or dipped cards because the fraud risk is higher. An e‑commerce store and a restaurant doing the same volume will have meaningfully different effective rates.
Average ticket
Small‑ticket merchants (coffee shops, $5–$15 tickets) benefit more from Zero‑Fee because per‑transaction fixed costs (the $0.10 assessment) eat a larger percentage. Large‑ticket merchants (furniture, $500+) benefit more from Interchange‑Plus because percentage savings compound.
Industry MCC
Your Merchant Category Code dictates interchange. Restaurants pay different rates than retail, which pays different rates than e‑commerce, which pays different rates than nonprofits. We pull the right MCC for your business when we model the quote.
How to verify our numbers yourself
You don’t have to take our word for any of this.
- 1.Pull your last three monthly statements from your current processor. Most have a download link in the merchant portal — if not, request them by email.
- 2.On each statement, find the total fees line and the total card volume line. Divide one by the other: total fees ÷ total card volume = your real effective rate. Do this for three months and average them.
- 3.That average number should equal what we tell you you’re paying. If it doesn’t, ask us why — we’ll walk through your statement line by line.
- 4.If we ever quote a savings number that exceeds 30% of your current fees, we owe you our reasoning in writing. That’s the threshold where unusual factors (heavy AMEX, big debit ratio, a processor that’s ripping you off worse than average) take over and the math needs documentation.
Get your real number
Send us your latest statement. Within 24 hours we’ll send back a plain‑English breakdown using the exact methodology on this page — line by line, no sales call required.