How to Compare Two Merchant Services Quotes
Use a practical comparison worksheet to price two payment offers fairly, find missing charges and calculate first-year savings.
The short answer
Give both suppliers the same turnover, payment counts, card mix and required functions. Convert each written quote into a complete monthly cost, add setup and exit costs, then compare over the same period. Treat an unspecified charge as unconfirmed, not zero, and keep contract and service differences visible.
In this guide
Start with one trading profile for both quotes
- Monthly and annual card turnover, including quiet and busy periods.
- Payment counts and average sale by channel.
- The value and count of each relevant card group.
- Refund activity and any separately chargeable payment events.
- Required terminals, locations, software, support and integrations.
Use actual statements where available. For a new business, label forecasts and show what happens if trading differs. Ask each supplier to use the same profile; otherwise two attractive totals may describe different businesses. The provider-selection guide covers the wider shortlist and service questions.
The quote comparison worksheet
| Line to complete | Evidence needed for both offers |
|---|---|
| Processing | Rates for every applicable card group and channel. |
| Event fees | Price and definition of each payment, request, refund or other event. |
| Minimums and fixed services | Calculation method, billing frequency and included allowances. |
| Equipment and software | Quantities, subscriptions, support and compatible integrations. |
| One-off and exit costs | Setup, migration, return costs and confirmed old-provider liability. |
| Term and pricing conditions | Start date, minimum term, notice, discount expiry and change provisions. |
Use a consistent VAT basis and distinguish a purchase from a rental. Where a promotional price expires, model both periods. Do not assume a quote includes every service simply because it shows a monthly total.
Worked example: Quote A versus Quote B
Fictional trading month. The business takes £25,000 across 1,000 payments: £20,000 in one card group and £5,000 in another. Both offers meet the required operational needs.
| Cost | Quote A | Quote B |
|---|---|---|
| Processing | £300: 1% of £20,000 + 2% of £5,000 | £300: 1.2% of all £25,000 |
| Per-payment fees | £30: 1,000 × 3p | £0 |
| Equipment | £25 | £20 |
| Required software | £10 | £35 |
| Monthly total | £365 | £355 |
| One-off costs | £0 | £300 |
| First-year total | £4,380 | £4,560 |
Quote B costs £10 less per month but £180 more in year one. Its £300 extra upfront cost takes 30 months of £10 savings to recover. The monthly totals are 1.46% and 1.42% of sales respectively, but those all-in ratios are not the contracted processing rates.
Check what could change the result
Repeat the comparison for a quieter month, a different card mix or a lower average sale where relevant. A result that depends on one narrow assumption deserves further checking. For itemised pricing, include the underlying charges rather than comparing only the provider margin.
- Are all quoted services needed, and are all needed services included?
- Are credits guaranteed, conditional or paid later?
- Will a retention offer reduce the current costs used as the baseline?
- Can existing equipment be kept without losing support or creating an integration fee?
- Does the comparison period show the full commitment you are accepting?
Separate unresolved questions from estimated savings. The PSR’s comparison information and quotation tools, where applicable, can help obtain a more consistent starting point.
Keep a decision record you can check later
Save the dated quotes, trading assumptions and calculation together. Use the calculator’s card groups, channels and monthly-minimum fields where they match the agreement, then add fixed and one-off costs. For changing monthly sales, use the seasonal calculator. Keep separate workings for unusual minimum-charge rules, changing card mixes or complex event charges, and use complete monthly cost totals where the simple tariff mode does not fit.
Request a demonstration of the required functions before committing. When the selected service begins, compare the first full statement with the agreed assumptions. If an unexpected charge appears, the saved quote gives you a clear basis for asking about it.
Common questions
Is the lowest percentage normally the cheapest quote?
The percentage alone cannot answer that. Card mix, transaction counts, fixed costs and one-off charges can change the outcome.
What should I do if a quote leaves a charge blank?
Ask for written confirmation. Mark it unconfirmed in your comparison and avoid presenting the saving as established until material missing costs are resolved.
Put your own figures to work.
Use the free calculator to organise your costs and keep a report. If something is unclear, you can ask for a free initial review.
No registration required. Calculator entries stay in your open browser page unless you choose to share a report in a review request.
Sources and how to use this guide
Primary references checked on 15 October 2026:
- PSR: card-acquiring market remedies and comparison information
- takepayments: processing, rental and minimum monthly charges
- Adyen: processing invoice and chargeable payment events
Worked examples are original fictional scenarios, not customer results, market averages or provider quotations. Unless stated otherwise, they use a consistent VAT basis and include only the costs listed. Provider prices, eligibility and terms can change. Check your written agreement before deciding.
Our guides explain costs and comparison methods. They do not rank the whole market or claim hands-on product testing. Source links are references, not a claim of partnership. Read the calculation method and limitations, or about the service.
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