Find out how long it takes for savings from a new processor to cover termination and setup costs.
Switching processors can save money, but an early termination fee, a leased terminal buyout or new hardware can eat the first months of savings. This calculator shows how long the new arrangement needs to run before you come out ahead.
How it works. Net switching cost is your one-time costs minus anything the new provider pays or credits, such as covering your old termination fee. Each year's savings is the first-year saving grown by the yearly growth percentage, which you can set to 0. Break-even is the point at which cumulative savings equal the net cost.
Worked example (illustrative). One-time costs of $1,200 with $300 reimbursed leaves $900 net. If you expect to save $1,500 in the first year, break-even is about 0.6 years, roughly seven months, and the net three-year gain is far larger than the cost.
Limits. Estimate savings by running your last three statements through the fee calculator at both the old and new rates. Do not count introductory rates that expire, and remember that sales may rise or fall. Savings that depend on the new provider keeping a promotional rate are not reliable.
Pricing and Comparison
Practical steps to reduce card processing costs, from reading your statement and negotiating markup to avoiding downgrades, using debit routing and surcharging legally.
