RESOURCE / TWIN HORN

Understanding processing costs

The percentage is one part of the offer. Compare what the merchant and the customer actually pay.

A processing quote can include fixed and variable costs, reserves, equipment, and settlement conditions. The total economics depend on the actual ticket size and mix of transactions.

Separate cost categories

Ask for transaction percentages, per-item fees, monthly fees, gateway and equipment costs, onboarding charges, reserves, refund and dispute costs, and contract terms.

Model the merchant’s basket

A fixed fee affects a small ticket more than a large one. Estimate several real ticket sizes and monthly volumes using the provider’s actual offer.

Check customer-facing fees

Convenience fees, surcharges, cash discounts, and bank-payment fees have different rules and may depend on location, payment rail, card-network policy, and provider approval. Display them accurately before a customer authorizes payment.

QUESTIONS THAT MATTER

Good answers make
better decisions.

Can we simply charge 4% plus a few dollars?

Only if the provider, payment method, applicable rules, and written merchant arrangement permit the specific fee and customer disclosure.

Can Twin Horn guarantee my margin?

No. Residual or referral compensation requires a partner agreement, and provider pricing must be confirmed in writing.