Processing fees are highly negotiable—most businesses just never ask. This step-by-step guide shows you exactly how to reduce your rates and eliminate junk fees, saving $200-$2,000+ per month.
Processors make 40-70% profit margins on markup and fees. There's plenty of room to negotiate.
It costs 5-10x more to acquire a new customer than retain an existing one. They want to keep you.
Dozens of processors compete for your business. Competition drives prices down.
Most businesses accept the rates they're quoted and never negotiate. Processors count on this. But the truth is, almost everything is negotiable: markup rates, monthly fees, per-transaction charges, contract terms, and early termination fees.
Businesses that successfully negotiate save an average of 20-35% on processing costs. For a business processing $100,000 monthly at a 2.5% effective rate, that's $500-875 in monthly savings—$6,000-$10,500 annually.
🎯 Retail Store ($50K monthly): Negotiated markup from 0.45% to 0.20% → Saved $125/month ($1,500/year)
🎯 E-commerce Business ($150K monthly): Switched from tiered to interchange-plus → Saved $650/month ($7,800/year)
🎯 Service Business ($80K monthly): Eliminated 5 junk fees and reduced markup → Saved $310/month ($3,720/year)
Successful negotiation starts with preparation. Walk into the conversation armed with data, and you'll have significantly more leverage.
Calculate your effective rate and itemize all fees. You cannot negotiate if you do not know what you are paying.
Research what businesses like yours should be paying. Market rates are your anchor point for negotiation.
Determine how much profit you generate for your processor. High-value clients have more leverage.
Check contract end date, early termination fees, and renewal clauses. Contract end approaching = maximum leverage.
Get 2-3 written quotes from competing processors. Competitive quotes are your strongest negotiating tool.
Best times to negotiate:
Call your processor's customer service line. Be professional and direct:
Example script:
"Hi, I would like to request a rate review for my account. I have been with you for [X years/months] and my processing volume has [grown to $X monthly / remained consistent at $X monthly]. I have done market research and found that our current rates are above market benchmarks for businesses like mine. I would like to discuss reducing our effective rate and some of the monthly fees."
Tone: Friendly but firm. You are not complaining—you are requesting a business arrangement review.
Present the competitive offers you have received first. This sets the anchor for negotiation.
Example script:
"I have received quotes from [Processor A] and [Processor B]. They are offering interchange-plus at 0.20% + 8¢ with no monthly minimum and a $10 PCI fee. My current effective rate with you is 2.4%, and I am paying $45 in monthly fees. I would prefer to stay with you, but I need rates competitive with these offers."
If the first representative says no or offers minimal reduction:
Say this:
"I understand you may not have authority to approve this. Can you please transfer me to your retention or cancellation department? I need to speak with someone who can match these competitive rates, or I will need to switch processors."
Why this works: Retention teams have authority to approve rate reductions that frontline reps do not. They are specifically trained to prevent cancellations.
Before accepting any offer:
⚠️ Warning:
Verbal promises mean nothing. If they will not provide written confirmation, do not accept the offer.
The average business that negotiates saves $200-$800 per month. That's $2,400-$9,600 annually—money that goes straight to your bottom line.
Before you call your processor, get a free audit that shows you exactly what you are paying, what you should be paying, and the specific rates and fees to negotiate for.