Compare payment costs for an SME without comparing apples to oranges

Quotes often use different pricing models. One formula shows an amount per Bancontact payment, while another shows a percentage per card type or a package with fixed costs. Therefore, create your own comparison model in which each provider is evaluated using the same assumptions.

Collect three months of real data

Record the number of transactions, total payment volume, average transaction value, and payment methods. For seasonal businesses, also note any peak periods. Without knowing the card mix, you cannot evaluate an offer with low debit card fees and higher credit card fees.

If you don't have any data yet, work with three scenarios and update them after the first few months.

Fixed and Variable Separation

Fixed costs include rent, software, SIM cards, and service fees. Variable costs are related to transactions and card types. A plan with higher fixed costs can be more cost-effective for higher transaction volumes; for a new business, the opposite may be true.

Include one-time installation or purchase costs over the same comparison period.

Assess time and risk

Manually entering amounts, sorting out payments, or waiting a long time for support comes at a cost—even if it doesn’t appear on the provider’s invoice. A point-of-sale integration or improved reporting can save minutes every day and reduce errors.

Also keep in mind replacement and downtime. Check what's included.

Read the fine print carefully

• Minimum Term and Automatic Renewal
• Indexation or rate change
• Cancellation Fee and Hardware Return
• Fees for international cards, refunds, or chargebacks
• Settlement Period and Any Reserves
• Support Hours and Service Call Fees

Compare on an annual basis

Calculate the total cost for twelve months and, if applicable, for the entire contract term. Divide that by the number of transactions and payment volume to get a better understanding, but also consider the absolute cash outlays.

Repeat the calculation annually whenever the volume or card mix changes. The formula that works best at the start isn't necessarily the best one after growth.

Want to know what electronic payments really cost? Then read more about What Electronic Payments Really Cost.

Making the right choice starts with how you operate

A fair comparison uses the same data, time period, and service expectations. Only then can you tell whether a lower rate actually saves you money or simply hides a different cost component.

A fair comparison also starts with a A payment terminal and point-of-sale system that fit your small business.

Find out which one Payment Solutions for SMEs fit in with your way of working.