What your FD should ask your acquirer at the annual review

Once a year, your acquirer should be able to answer a few straight questions. Most finance directors never ask them. Here are the ones worth asking.

Why bother?

Card fees are one of the few costs that quietly drift. Your business changes. Your sales mix changes. Your acquirer's terms can change too. A yearly check takes an hour and often turns up something.

You don't need to be a payments expert. You just need the right questions.

1. What was my effective rate this year?

Total fees divided by total card sales. That's the one number to compare year on year.

Picture a business whose effective rate went from 1.6% to 1.8% with no change in what it sells. That's an illustration, not a benchmark. But it's exactly the kind of thing to ask about.

2. What changed, and why?

Fees have three parts: the bank's charge (interchange), the card schemes' charges, and your acquirer's own margin. The first two are largely set outside your acquirer's control. The last one is theirs. Ask: has my acquirer's margin moved? If so, when, and what did I get for it?

3. Am I on interchange++ or a blended rate?

Interchange++ shows each cost separately. Blended wraps them into one rate. Neither is wrong, but you should know which you're on, and what's in the bundle if it's blended.

4. How many of my payments are getting approved?

Every declined payment is a customer who didn't buy. Ask for your approval rate and the main reasons for declines. Then ask what could be done about them.

5. What are my chargebacks costing me?

Not just the amount. The fees too, and how your ratio looks to the acquirer. If it's creeping up, you want to hear it from them early, not in a letter.

6. When does my money arrive, and is any of it held back?

Settlement timing hits your cash flow. Ask how long it takes, and whether any reserve is being held. If there is one, ask why, how much, and when it will be reviewed.

7. What other charges am I paying?

Monthly fees, gateway fees, terminal fees, minimum charges, compliance fees. Ask for every one listed and added up, so nothing hides in the small print.

8. What are my contract terms?

Term, notice period and renewal terms. Many contracts roll over automatically, so know your dates. Asking early gives you a good conversation when you aren't up against a deadline.

9. Who do I call when something goes wrong?

A named person who knows your account is worth more than a ticket number. If you don't have one, ask for one.

10. What would you do to keep my business?

You don't need to be aggressive. A fair question gets a fair answer, and you'll learn how they see you.

What good looks like

A good acquirer answers plainly, shows their working, and doesn't get defensive. If you get waffle, that tells you something too.

Want a hand?

We work with 40+ acquirer partners and have spent two decades in payments. We know what's reasonable and who to talk to. If you'd rather not go through it alone, send us a statement and we'll explain it, free. No obligation. No hard sell.

One-page checklist: the annual card review

Take this into your next review.

• Effective rate this year versus last year (total fees ÷ total card sales)
• What changed in the bank charge, the scheme charges and your acquirer's margin
• Pricing type: interchange++ or blended, and what's in the bundle
• Approval rate, and the top reasons for declines
• Chargeback count, ratio and fees
• Settlement timing, and any reserve: why, how much, review date
• Every other charge, listed and added up
• Contract term, notice period and renewal terms
• Your named contact and how to reach them
• What they'd do to keep your business

Not sure what you're looking at? Send us your statement and we'll walk you through it. Free.