Flat card rates vs itemised pricing: compare your payment mix
Compare card-processing proposals by applying each fee schedule to the same transactions. A headline percentage leaves out the effect of fixed transaction charges, terminal rental and the cards your customers use. Build one monthly basket, price it twice, then change the average sale size to see whether the result holds.
What you’ll get from this guide: Compare two quotes against the same transaction basket and average sale sizes.
Compare card-processing proposals by applying each fee schedule to the same transactions. A headline percentage leaves out the effect of fixed transaction charges, terminal rental and the cards your customers use. Build one monthly basket, price it twice, then change the average sale size to see whether the result holds.
Have your two quotes beside you as you work through the comparison. The examples below are invented pricing structures, not offers from a payment provider.
Give both providers the same basket
Use a recent representative month. Collect card value, transaction count, domestic and overseas mix, online versus counter sales, refunds and any minimum commitment. Ask each provider to price that basket with all necessary services included.
Interchange-plus pricing separates underlying card costs from a provider markup. A blended plan combines categories into fewer prices. These labels don't tell you the final bill by themselves; the RBA describes why plan structures and card mix affect acceptance costs. Ask what the quoted percentage includes and whether a fee is charged on successful sales, attempts or refunds.
Price the same $40,000 month twice
Assume 800 sales averaging $50: 480 debit sales worth $24,000 and 320 credit sales worth $16,000. Both fictional quotes use the same billing basis, with no overseas cards or refunds. Quote B below is an itemised all-in category quote; it is not a prediction of actual interchange fees.
| Charge | Quote A | Quote B |
|---|---|---|
| Debit percentage | Included in flat rate | $24,000 × 0.6% = $144 |
| Credit percentage | Included in flat rate | $16,000 × 1.4% = $224 |
| Percentage total | $40,000 × 1.4% = $560 | $368 |
| Transaction fees | $0 | 800 × $0.10 = $80 |
| Monthly fixed fees | $0 | $60 |
| Monthly cost | $560 | $508 |
| Effective rate | 1.40% | 1.27% |
Fictional example in AUD. Replace these inputs with your own records.
On these assumptions B is $52 cheaper. That is a comparison result for this basket, not a reason to choose B before checking the contract and checkout.
What happens when the average sale shrinks?
Keep monthly value at $40,000 and the same mix by value. At a $20 average sale there are 2,000 transactions. At $100 there are 400. B's percentage charge stays $368 but its fixed transaction cost changes.
| Average sale | Transactions | Quote A | Quote B |
|---|---|---|---|
| $20 | 2,000 | $560 | $628 |
| $50 | 800 | $560 | $508 |
| $100 | 400 | $560 | $468 |
Fictional example in AUD. Replace these inputs with your own records.
The crossover is 1,320 transactions: ($560 - $368 - $60) / $0.10. That corresponds to an average sale of about $30.30. Your own schedule may have minimums, volume tiers and different category rates, so don't carry this threshold into another quote.
Add the awkward costs before signing
Request written answers on terminal replacement, extra locations, integration charges, refunds, disputes, settlement options and ending the service. Put one-off switching costs beside the recurring difference. A $600 changeover cost would take roughly 11.5 months to recover from a $52 monthly saving, assuming that saving continues.
Changing a provider can also change the time spent closing the till. Test that separately with the integrated-versus-separate terminal worksheet. Start with your existing merchant statement if you don't yet have reliable inputs, and use pricing and margin guidance when reviewing the wider cost of a sale.
Key takeaways
- Give both quotes the same volume, count and payment categories.
- Test small and large average sales before choosing a plan.
- Count switching costs and contract exclusions alongside recurring fees.
Your working checklist
Copy this blank template into your own files. Your records stay with you.
Where to get help
Where to go from here
Integrated EFTPOS or separate terminal: test the workflow
Measure repeated entry and closing work before paying for integration.
3 min readPOS trial checklist: test awkward sales before committing
Test the exact product and hardware before committing.
3 min readLeast-cost routing: check what your provider enables
Continue the “understand payment costs” reading sequence.
3 min read
General information only. This guide doesn't take your personal or business circumstances into account and isn't financial, legal or tax advice. Rates and thresholds change — check the official sources linked in this guide and get qualified advice where your circumstances require it.