Everything we wish someone had told us before we signed our first merchant processing contract. No marketing-speak — just direct answers to what merchants actually ask.
What it actually takes to open a merchant account, what we'll ask for, and what the underwriting process looks like.
For a standard low-risk business — restaurant, retail, salon, professional services — most approvals come back within 1-3 business days from when we receive a complete application. We can often have you processing within a week.
High-risk businesses (CBD, firearms, nutraceuticals, etc.) typically take 5-10 business days because underwriting reviews additional documentation and may require multiple processor placements. We'll set expectations upfront based on your industry.
For most low-risk merchant accounts:
High-risk applications need additional items, often including business formation docs, website screenshots, product/service descriptions, and compliance documentation specific to your industry.
Often yes, but it depends on the specifics. Underwriters look at the whole picture: business type, processing history, time in business, bank statements, and personal credit. A 580 credit score with strong business fundamentals can get approved where someone with great credit but a brand-new business in a high-chargeback industry might not.
Don't self-disqualify. Apply and we'll tell you honestly where things stand.
Yes. New businesses get approved every day. We work with several processors who have specific underwriting tracks for startups. The application may require additional info (business plan, projected volume, owner background) but new-business approvals are routine.
Card networks (Visa, Mastercard, Discover, Amex) and member banks require personal identification on every merchant principal. It's used for identity verification, OFAC sanctions screening, and standard underwriting — same way a business loan or commercial lease would require it. It's not stored in any unsecured form and we never share it outside the application process.
No. We don't lock merchants into long-term contracts and we don't charge ETFs. If you ever want to leave, you can — though we'd much rather earn your business every month than trap you into it.
This is a meaningful difference from many ISOs that bury 3-year auto-renewing contracts with $295+ ETFs in their paperwork. We don't operate that way.
No application fee. No setup fee for standard accounts. Some custom integrations or specialized equipment may have one-time costs, but we'll quote those upfront — you'll never be surprised by a fee that wasn't disclosed.
Where processing fees come from, what's negotiable, and how to compare pricing without getting lost in jargon.
Interchange-plus shows you the actual cost the card networks charge (interchange), plus a small markup that goes to your processor. Transparent — you can see exactly what you're paying for.
Tiered pricing bundles transactions into "qualified," "mid-qualified," and "non-qualified" rates. It sounds simple but hides huge markups — the processor decides which tier each card falls into, and that decision usually doesn't favor you.
We default to interchange-plus pricing because it's honest. If you're currently on tiered pricing and want a clear comparison, send us your statement.
PCI DSS (Payment Card Industry Data Security Standard) is the security standard card networks require for every business that accepts cards. Compliance fees fund the annual security questionnaire, vulnerability scans, and the infrastructure that keeps cardholder data secure.
Reasonable PCI fees are around $99-$150/year. If you're being charged $20+ per month for "PCI compliance," you're being overcharged. Worse, some processors charge separate "PCI non-compliance fees" of $30-$50/month on top — money that just disappears into their margins.
Most of the time, yes — but we won't claim it without seeing your statement. Send us your most recent processing statement (last 1-2 months is fine) and we'll do a line-by-line analysis. We'll show you what you're paying, what we'd charge, and what you'd save. If we can't beat them, we'll tell you that too.
If you're with a major processor on tiered pricing, savings of 15-30% are common. If you're already on a good interchange-plus rate, savings may be smaller but we can often beat it on incidentals (PCI, statement fees, monthly minimums).
There's always a catch. A "free" terminal usually means one of three things: (1) you're locked into a multi-year contract with high ETFs, (2) your processing rates are inflated to recoup the equipment cost over time, or (3) you're on a "lease" disguised as ownership, with monthly equipment fees that exceed the terminal's value within a year.
We're upfront about hardware costs. Most modern terminals are $300-$600 to own outright. We'd rather quote you an honest equipment price than pad your processing rates to "give" you something free.
We earn a small markup on every transaction we process — typically a few cents per swipe and a small percentage. Most processors do exactly the same thing. The difference is that our markup is transparent (you see it on your statement) and small (because we'd rather have 500 happy long-term merchants than 100 who feel ripped off).
We make money slowly, by retaining merchants. The industry standard is to make money fast by churning them.
A monthly minimum is a floor on what you pay each month, regardless of how little you process. If your monthly minimum is $25 and you only generate $15 in processing fees that month, the processor bills you the $10 difference.
Reasonable for most established businesses. Frustrating for seasonal businesses or sole proprietors with low volume. Ask before you sign — we structure plans so monthly minimums only apply where they make sense.
Common fees that don't belong on your statement (or are wildly inflated):
Send us your statement and we'll point out exactly which fees you're being charged that don't have to be there.
The fastest-growing pricing model in merchant services, what makes it different from surcharging, and where it's legal.
Cash discount: You post a single price that includes the cost of accepting cards, then offer a discount to customers who pay with cash. Legal in all 50 states. No card network registration required.
Surcharge: You post a base price, then add a fee at checkout for customers who pay with credit cards. Legal in most states but requires registration with the card networks, has strict disclosure rules, and is prohibited or capped in several states (CT, MA, ME, OK, and previously NY).
Cash discount is the cleaner path for most merchants. Read more →
Yes — when implemented correctly. The federal Durbin Amendment specifically permits cash discounts as a payment method incentive. Every state allows it. The key is implementation: the posted price must be the "card price," and the cash discount is offered to customers paying with cash. Done wrong (e.g., adding a fee at checkout that isn't disclosed on shelf), it becomes a surcharge — and surcharging has different rules.
Our program is structured to comply with state and federal regulations. We handle the signage, receipt language, and POS configuration so you stay compliant.
Almost never. When done right, the discount feels like a reward, not a penalty. Customers paying with cash get a clear price break. Customers paying with cards see the same price they'd see at most retailers anyway. Gas stations have done this for decades.
The merchants who see pushback are usually the ones who switched abruptly without good signage or staff training. We help you transition smoothly — clear signage at the register, point-of-sale messaging, and scripts your staff can use.
For a typical business processing $30,000-$50,000/month, cash discount programs reduce net processing costs to near zero — the credit card processing fee is absorbed by the small fee added to card-paying customers, and your cash customers get a small discount that costs you nothing extra.
For a business that was paying 2.6% effective rates on $40,000/month, that's roughly $1,000/month back to your bottom line. It compounds significantly over time.
It works best for businesses with moderate average ticket size where customers expect transparent pricing: liquor stores, convenience stores, restaurants, salons, small retail, professional services. It can work for higher-ticket businesses too, but the math may favor traditional interchange-plus pricing.
It's not a fit for: e-commerce (different mechanics), businesses with very large ticket sizes ($1,000+) where customers may push back, or industries with regulated pricing (some healthcare, government contracts).
Send us your statement and we'll model both approaches and show you which saves more.
Most modern terminals (Dejavoo Z11, PAX A920, Clover devices, etc.) support cash discount natively — we just configure your existing terminal. Older terminals may need to be replaced or reprogrammed, which is a one-time cost we'll quote upfront.
High-risk doesn't mean illegal — it means underwriters look at the account differently. Here's what to expect.
"High-risk" is a processor classification, not a moral judgment. A business gets labeled high-risk for any combination of:
Being high-risk just means you'll work with processors who specialize in your category, not the generic ones that auto-decline anything outside their lane.
Yes. CBD derived from hemp (under 0.3% THC, compliant with the 2018 Farm Bill) is approvable. We place CBD merchants with high-risk processors who specialize in the category. Read more →
We do not process delta-9 THC products above the 0.3% threshold or anything sold under state-licensed cannabis regulations — those require state-licensed cannabis banking infrastructure, which is a separate world.
Yes. Federally licensed firearms dealers (FFL holders) selling legal products to legal buyers can be approved. Documentation includes a copy of your FFL, proof of compliance with state and federal regulations, and clear policies on background checks. Read more →
Typically 5-10 business days for high-risk approvals. Underwriters review more documentation, may ask follow-up questions, and sometimes place you with multiple processors as a precaution. We've seen approvals as fast as 3 days and as slow as 3 weeks depending on industry complexity and how complete the initial application is.
Higher chargeback risk means processors set aside more capital reserves and price the higher loss potential into the rates. Industries with chargeback ratios consistently above 1% pay meaningfully more than low-risk merchants. There's also a smaller pool of processors willing to handle these categories, which reduces price competition.
What we can do is shop your account across multiple high-risk processors to find the best available rate — not just place you with whoever pays us the highest commission.
Yes, for legal adult content businesses (subscription sites, novelty retailers, dating platforms). These require specialized high-risk processors and additional documentation. Read more →
Which POS or terminal fits your business, what you can keep, and what we can reprogram.
The best system depends on your service style and volume:
We help you pick based on what you actually need, not what we make the most margin on.
For most retail (boutiques, specialty stores, salons), Clover Station Duo is the most-loved choice — it's intuitive, has strong inventory management, and integrates with most apps. For higher-volume retail (convenience, liquor, smoke shops), NRS is purpose-built and free with our program.
Often yes. If your terminal is a model we can reprogram (most modern Dejavoo, PAX, Verifone, and Ingenico terminals), we can switch you over without buying new equipment. There may be a small one-time reprogramming fee.
Send us a photo of your terminal (front + model sticker on the back) and we'll tell you if it can be reprogrammed.
Yes — for most makes and models. Reprogramming a Dejavoo Z11 from another processor takes 15-20 minutes remotely. Same with PAX A920. Some older units or proprietary terminals (like Square's hardware) can't be reprogrammed — those would need replacement.
All four are reputable POS systems with different strengths:
Different POS systems are right for different businesses. We don't push one over another — we recommend what fits.
Deposits, chargebacks, downtime, and the other operational realities of running a merchant account.
For most low-risk merchant accounts, deposits land in your business bank account next business day when you batch your terminal before the cutoff time (usually 7pm-9pm EST depending on processor). Same-day funding is available on some processors for an additional fee.
High-risk merchants may see slightly delayed funding (T+1 to T+3) as part of underwriting requirements. New accounts may have a brief holding period for the first few weeks.
A chargeback is when a cardholder disputes a charge with their bank instead of asking you for a refund. The bank reverses the transaction, often before you can respond, and you can lose the money plus a $15-$25 chargeback fee.
To minimize chargebacks:
If you receive a chargeback, submit a ticket and we'll walk through your response timeline.
Yes. Most modern merchant accounts can process both card-present (in-store, terminal) and card-not-present (online checkout, virtual terminal, recurring billing) on the same MID. The rates differ slightly — card-not-present transactions cost more because they're higher-risk to the networks — but it's the same account.
We can set up a virtual terminal, online payment gateway (Authorize.Net, NMI), and physical terminal under one account.
Call us at (888) 556-7356 and we'll troubleshoot. Most issues are simple (paper, connectivity, batch needing to close) and we can resolve them on the call. For hardware failures, we can ship a replacement terminal overnight in most cases.
In the meantime, your terminal may have offline mode (stores transactions to upload when reconnected) — we'll walk you through it. You can also process via the merchant portal in a pinch.
Yes, on all modern terminals. Apple Pay, Google Pay, Samsung Pay, and tap-to-pay credit cards all run through the same NFC reader and process at the same rate as a regular chip card transaction.
Common reasons for decline:
Decline responses come from the cardholder's issuing bank, not from us. We can't override them. The customer needs to call the number on the back of their card.
If you're an existing merchant, submit a ticket and we'll respond within one business day. If you're shopping for a new processor, send us your statement and we'll do a free side-by-side comparison.