How to Negotiate Lower Credit Card Processing Rates

Many business owners accept their credit card processing rates as fixed costs, but the truth is that your processor's markup — the portion above interchange and assessments — is entirely negotiable. With the right approach, you can reduce your rates significantly.

Know Your Numbers Before You Negotiate

Before contacting your processor, calculate your effective rate, understand your monthly volume and average ticket size, and know your card mix. A processor is more likely to negotiate when you demonstrate that you understand your costs and can articulate exactly what you are paying.

Leverage Your Processing Volume

Volume is your strongest negotiating tool. Processors want to retain high-volume accounts because they generate steady revenue. If you process over $20,000 per month, you have significant leverage. If you process over $100,000, you can often negotiate rates that are very close to interchange.

Get Competing Quotes

The most effective way to negotiate is to get two or three competing quotes from reputable processors. Present these to your current provider and ask them to match or beat the best offer. Most processors would rather reduce their margins slightly than lose your account entirely.

Focus on the Right Fees

Remember that interchange fees and network assessments are non-negotiable — they are set by Visa, Mastercard, and other networks. Focus your negotiation on:

• The processor's basis point markup
• Per-transaction fees
• Monthly account fees
• PCI compliance fees
• Batch fees

Ask for a Rate Review Annually

Even after negotiating, request an annual rate review. Your business grows and changes, and your processing rates should reflect that. Some processors add fees or adjust markups over time, making annual reviews essential.

Consider Working with a Consultant

An independent payment consultant like Mogil Partners negotiates processor rates every day. We know what rates are competitive for your volume and industry, and we can leverage our relationships with multiple processors to get you the best possible deal.