Don’t go by rate alone. The only way to compare companies is to compare the total of all fees for the month and divide by your Visa/MasterCard/Discover sales (this is what your rate really is for the month). Include all fees for example; monthly minimum, gateway fees, internet transaction fees, batch fees, network fees, any fees from third party companies besides your processor.

2.4% is about the going rate unless his 200 transactions per month add up to more than $1,000 each. Once you get above $250,000 you might get a slightly better rate.

He could also decide to only take other forms of payment – or add the 2.4% to his prices.