Choosing a payment processor: a checklist of questions

Before you sign with any payment processor, get written answers in four areas: what you'll pay, what the contract commits you to, who helps when the terminal fails, and what the equipment costs. Nearly every bad processing relationship traces back to a question nobody asked at the start. This checklist covers those questions in the order a sales conversation usually raises them.

What should you ask about pricing?

Ask for the complete fee schedule in writing, not the headline rate from the pitch. A quoted rate often applies only to certain cards, while other card types cost more. Ask which rate applies to which cards, and what the per-transaction fee is on top of the percentage.

Then ask about the fixed costs: monthly fees, statement fees, and any PCI fee. PCI stands for Payment Card Industry, the security standards every card-accepting business follows, and some processors charge for the compliance program built around it. Ask whether there's a monthly minimum, meaning a floor you pay even in a slow month.

If a cash discount program interests you, a plan where posted prices include a small offset and customers paying cash receive a discount at the register, ask exactly how the processor implements it and how it appears on customer receipts.

Contract questions that protect you later

Ask the term length and whether the contract renews automatically. Auto-renewal clauses with narrow cancellation windows are common, and missing the window can hold you for another full term. Ask what the early termination fee is, in dollars, and get that number in writing.

Ask whether you own the equipment or lease it. A lease can quietly cost several times what the hardware is worth over its life. Honestly, if a provider needs a long contract and a steep exit fee to keep you, that tells you something. NRS Pay has no long-term commitment and no early termination fees, and that's a fair standard to hold any provider to.

Who answers the phone when the terminal goes down?

A store sells on Saturday nights and Sunday mornings, so weekday-only support is a real cost, not a footnote. Ask what the support hours are, whether a live person answers, and what happens when hardware fails during a rush. Ask how replacement equipment ships and how long it takes to arrive.

NRS Pay staffs live support seven days a week. Wherever you end up signing, make sure the answer to "who do I call on Sunday?" is a person, not a portal. You can read about how NRS Pay came to work this way on our story.

The checklist, in one place

1. What is the complete fee schedule, in writing?
2. Which fees are per transaction and which are monthly?
3. Is there a statement fee, PCI fee, or monthly minimum?
4. What is the contract term, and does it auto-renew?
5. Is there an early termination fee, and exactly how much?
6. Do I own the equipment, or is it leased?
7. What happens when a reader breaks on a weekend?
8. What are the support hours, and is it a live person?
9. Can the plan support EBT and eWIC, the card systems for government food and nutrition benefits, plus a cash discount program if I want one?
10. How soon after a batch closes does the money reach my bank?

Take this list into the sales call and write the answers down as you get them. A good provider won't flinch at any of these.