Understanding the complexity of payment terminal tariffs

Electronic payment terminals (EPTs) are an essential link in the business chain of many retailers, craftsmen and self-employed professionals. However, they are often difficult to understand and compare. In this article, we not only explain the reasons for this complexity, but also provide you with a number of benchmarks (price ranges, commissions and subscriptions) to help you find your way around.

Rates vary according to several factors

Before getting into the details of the figures, it's important to bear in mind that rates depend mainly on :

• The nature of the contract: purchase or rental of the terminal, no-commitment or subscription model, etc.
• The type of service provider: traditional bank, payment service provider (PSP) such as Easytransac, or Eftpos terminals manufacturer (Ingenico, Verifone...).
• Your sector of activity and volume of transactions: a business with a high turnover can often negotiate lower rates than an independent starting out.
• Complementary options and services: for example, integrated accounting software, online cash register, contactless payment, etc.

These peculiarities explain why there is not always a standardized price list visible on all sites. Nevertheless, we can give you a few useful pointers.

Equipment costs: purchase or rental

Purchase of a payment terminal

• Low range: some entry-level models, designed more for itinerant activities or small volumes, can start at around €19 to €30 (excluding special offers).
• Intermediate range: for a more complete VSE (integrated printer, 3G/Wi-Fi connection, etc.), the price can vary between €150 and €300 direct purchase.
• High range: for highly advanced VSEs (Android terminals, large screens, advanced functions), the budget can exceed €400.

Payment terminal rental

• Standard monthly rental: depending on the bank or service provider, you can expect to pay between €10 and €30 ex-VAT per month for a standard model (fixed or portable Eftpos terminals), sometimes with a 12, 24 or 36-month commitment.
• All-in-one" packages: some suppliers offer packages including rental, maintenance, customer support and sometimes a range of services (reporting, customer loyalty, etc.) for €20 to €40 ex-VAT per month.

Good to know: When you buy your terminal, you no longer have to pay rental fees, but you may have to take out a maintenance option or pay for technical support if necessary.

Transaction rates and commissions

Fixed transaction fees vs. percentage

1. Variable commissions (percentage): many service providers charge a percentage of the amount collected, e.g. between 0.5% and 2.0% depending on the card used (Visa, Mastercard, foreign card, etc.).
2. Fixed commissions (flat fee per transaction): some charge a fixed amount per transaction in addition (or instead) (e.g. €0.05 to €0.20 per transaction).
3. Mix of the two: it's also common to see a hybrid model, for example 0.8% + €0.05 per transaction (0.8% being the chosen payment partner's commission and €0.05 the fees charged by CB, Mastercard or VISA).

Standard rate ranges

• Traditional banks: On domestic cards (French Visa/Mastercard), a negotiated monthly rate can vary between 0.5% and 1.5% + sometimes a few cents per transaction.
• PSP (Easytransac, SumUp, Zettle, etc.) :
  • No-subscription" or "transaction-based" options: rates can range from 1.0% to 2.0% per payment (depending on card, country and option chosen).
  • Subscription + reduced rate" formula: by committing to a monthly volume or subscription package, you can benefit from a more advantageous rate.

Example: At Easytransac, for a local payment in France and Europe, the standard commission starts at 0.55% and can be reduced according to the volume of transactions (sliding scale fees).

Ancillary costs not to be overlooked

1. Commissioning or installation costs
   • Some service providers charge an initial fee (from €0 to €100 on average) for terminal configuration, delivery or activation.
   • In other cases, it's included in a global package.
2. Maintenance and support costs
   • When you rent a VSE, assistance and after-sales service are often included.
   • If you purchase a terminal, you may have to pay a maintenance contract (a few euros per month, or a one-off cost in the event of a breakdown).
3. Cancellation or commitment fees
   • Traditional banks often impose a 12- to 36-month rental commitment. Early termination fees may apply if you break the contract early.
   • The "new generation" PSPs (including Easytransac) more often offer no-commitment or cancel-at-any-time formulas.
4. Costs associated with multiple card networks
   • To accept certain foreign cards (Amex, UnionPay, JCB...), surcharges or higher rates may apply.
   • Also check whether you need multi-currency functionality: this is an additional service that can have an impact on your costs.

The evolution of the offer: towards digitalization and omnichannelity

Another reason why pricing can appear even more complex today is the diversification of services:

• Online and in-store checkout: some service providers offer a physical terminal coupled with an e-commerce solution.
• Reporting and statistics: access to dashboards, real-time sales tracking, product analysis, etc.
• Loyalty and marketing tools: dematerialized receipts, loyalty card management, targeted promotions...
• Innovative payment solutions: QR code, wallet (Apple Pay, Google Pay), connected watches, etc.

These additional functionalities can be invoiced in the form of packs or options, resulting in offers that are more or less transparent and easier to understand.

How do you make sense of so many variables?

1. List your needs precisely
   • What is your monthly transaction volume?
   • What's the average shopping basket?
   • Do you sell exclusively in-store, online, or both?
   • Do you need software integration (accounting, inventory management, etc.)?
2. Compare several quotes
   • Contact various banks, PSPs (Easytransac, SumUp, Zettle, PayPlug...) and possibly manufacturers.
   • Analyze in detail: lease or buy, transaction rate, ancillary costs, minimum commitment...
3. Negotiate
   • If you have a substantial volume of transactions or a positive business history, you can use the competition to get a better rate.
   • Traditional banks, in particular, are often willing to negotiate (especially if you have several products with them: business accounts, loans, etc.).
4. Check commitment period and termination conditions
   • Seemingly very attractive offers may come with a long commitment. Make sure you won't be penalized if your business changes.

In a nutshell

• Purchase of a TPE: from €19 (entry-level mPOS) to over €400 for top-of-the-range models.
• Monthly rental: from €10 to €40 on average, often with a commitment of 12 to 36 months.
• Commissions per transaction: with EasyTransac, local charges start at 0.55% (France/Europe), with sliding-scale charges according to volume. For other payment types or card networks, from 0.5% to 2.0% depending on operator and formula.
• Additional costs: commissioning (0 to €100), maintenance (included or a few euros/month), termination (variable), etc.

The key to making the right choice is to clearly define your priorities (initial budget, flexibility, transaction volume, services included) and compare several solutions. At Easytransacwe make it a point of honour to offer you formulas tailored to your needs, while enabling you to maintain clear visibility over the costs associated with your cash receipts.

Need more information on Easytransac rates?

Don't hesitate to contact us for a quotation or to discuss the best solution for your business. We'll be delighted to help you choose and install your payment terminal... with complete transparency!