The short version
- Use settled card volume, not total repair revenue, in every comparison.
- Flat rate buys simplicity but may hide the economics of the card mix.
- Interchange plus exposes components but still requires statement-level math.
- Dual pricing changes the customer-facing workflow as well as merchant cost.
Processing proposals are difficult to compare because they do not always price the same event. One may quote a single percentage, another may add a markup to underlying costs, and a dual-pricing program may move eligible credit-card cost into the regular card price. The only fair comparison holds the shop's sales mix constant.
For a body shop, that means separating carrier checks and ACH from actual card collections, then modeling customer deductibles, customer-pay repairs, deposits, refunds, and remote payments.
Flat rate is easy to quote, not always easy to audit
A flat-rate offer generally applies one stated percentage and often a per-transaction amount. The benefit is predictability. The limitation is that the advertised percentage may not include monthly charges, gateways, PCI costs, chargebacks, equipment, or special treatment for keyed transactions.
Calculate the effective rate from a full statement after the account has been operating. A quoted rate is not an effective rate until every processing cost and settled card dollar for the same period is included.
Interchange plus separates underlying cost and provider markup
Interchange-plus pricing can make the provider's markup more visible, but the statement may contain many card categories and separate assessments or fees. The body shop still needs an all-in monthly total.
Card mix matters. In-person credit, rewards cards, commercial cards, keyed deposits, and remote balance payments may not carry the same underlying cost. Compare the proposal using real transaction data when available rather than a generic blended assumption.
Dual pricing changes both the bill and the counter
An approved dual-pricing setup can reduce the merchant percentage on eligible configured credit-card transactions, but it requires customer-facing prices, correct card identification, staff training, and consistent treatment across estimates, deposits, links, invoices, receipts, refunds, and final balances.
Monthly, debit, PCI, gateway, batch, chargeback, and other account-specific costs may remain. A no-contract, no-cancellation-fee offer reduces switching risk, but the shop should still review the complete written terms.
Put the same inputs into all three columns
| Input | Why it matters |
|---|---|
| Settled credit-card volume | The percentage cost is applied here, not to insurer checks |
| Debit and prepaid volume | These cards need separate treatment |
| Transaction count and channels | Per-item and keyed or remote costs can change the total |
| All fixed fees | Monthly, PCI, gateway, batch, equipment, and other fees survive a headline rate |
| Term and exit cost | A cheaper month can be outweighed by equipment leases or cancellation charges |
Choose the model the shop can verify and operate
Run the comparison over twelve months and include a high-volume and low-volume month. Ask the provider to identify every remaining fee and show how debit, refunds, keyed cards, digital wallets, and payment links behave.
Then test the customer workflow. If the body shop cannot show both prices before authorization or keep supplements and refunds consistent, a lower processing number on paper may not be the best operational choice.
Questions business owners ask
Which pricing model is always cheapest?
None. Cost depends on card volume, card mix, transaction count, channels, fixed fees, terms, and whether the shop can operate the model correctly.
Can a body shop compare proposals using total sales?
Not accurately when substantial revenue arrives by insurer check, ACH, cash, financing, or accounts receivable. Use settled card volume.
Is 0% the same as no fees?
No. The merchant credit-card percentage may be 0% on eligible configured transactions while other disclosed account costs remain.
Primary sources
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This page provides general business information, not legal, tax, or accounting advice.