Short answer
An honest merchant services comparison uses the merchant's own figures, includes every cost on both sides, states its assumptions and never guarantees a saving. Misleading claims usually come from omitting fees, comparing different turnovers, quoting best cases as typical or using vague promises like up to 40% off. Check the advertising and consumer rules where you work.
Part of Selling and savings quotes. Start with the main guide: Merchant statement analysis in five minutes: a repeatable method
Key takeaways
- A fair comparison uses the same month, the same turnover and every cost on both sides.
- The usual misleading claims are omitted fees, best-case savings, vague percentages, guarantees and false urgency.
- Estimates should be called estimates, with the assumptions stated on the page.
- Claims about other companies must be accurate and supportable, not marketing talk.
- Rules differ by country, so check the advertising and consumer protection rules that apply to you and take advice.
Merchant services has a reputation problem, and much of it is earned. Business owners have heard "save up to 40%" so often that they discount every claim, and many have been burned by a switch that cost more than it saved. The consultants who do well over years are rarely the ones with the boldest claims. They are the ones whose numbers hold up when checked.
This guide is about making comparisons and savings claims that are fair, accurate and defensible. It covers what counts as misleading, a checklist you can run before you send anything, wording that protects you and the merchant and the limits of what any guide like this can tell you about the law. It is general information, not legal advice. The rules differ by country and by who you work for, so check the advertising and consumer protection rules that apply to you, and your acquirer's or ISO's own standards.
Why does this matter beyond ethics?
Honest claims are the right thing to do. They are also good business.
- A claim that fails the merchant's check loses the deal. Merchants who find an omitted fee do not merely refuse. They tell others.
- Complaints and regulators care about substantiation. Advertising and consumer rules in most countries require claims to be accurate and capable of being supported. Keeping your workings is your defence.
- Your provider or ISO may have its own rules. Many have standards for how savings are described.
- Referrals depend on it. A merchant who got exactly what was promised sends friends.
What makes a claim misleading?
Most misleading claims in this field fall into a handful of patterns. None of them needs bad intent. Many come from rushing.
| Pattern | Example | Why it misleads | Honest alternative |
|---|---|---|---|
| Omitting fees | A saving that leaves out the terminal or monthly fees on your side | The real saving is smaller | Include every cost on both sides |
| Best case as typical | "Save £720 a year" from one strong month | Seasonal months may save less | Test a quiet month and quote the defensible figure |
| Vague percentages | "Up to 40% off your fees" | It cannot be checked | A pounds figure from the merchant's own statement |
| Different bases | Comparing a rate on gross turnover with one on net | The numbers are not like for like | One basis on both sides |
| Hiding exit costs | A saving that ignores what it costs to leave | The first year may be a loss | Show the saving net of exit costs |
| Guarantees | "Guaranteed savings" | Savings depend on mix and volume | "Estimated saving, based on your statement" |
| False urgency | "This rate ends Friday" | Pressure undermines informed choice | A genuine quote validity date |
| Unsupported claims about others | "Your provider overcharges" | You cannot prove it | Compare with the merchant's own statement |
How do you check a claim?
Run every claim through the same steps before it leaves your desk.
- Where does the number come from?The merchant's own statement and contract, with the month named.
- Are both sides complete?Terminals, monthly fees, one-off costs and exit costs on each side.
- Is it like for like?Same turnover, same card mix, same basis for turnover and tax.
- Does it survive a bad month?Test the quietest month and say what happens.
- Are the assumptions written down?On the quote, where the merchant can see them.
- Would you be happy for the merchant's accountant to check it?If not, fix it.
If a step fails, change the claim, not the check.
What wording works?
How you say it matters as much as what you say.
Prefer
- "Based on your statement for [month], we estimate a saving of £X a month."
- "This assumes the same turnover and card mix. If they change, the saving will change."
- "The saving shown is after an exit cost of £Y."
- "I could not find a saving on your current pricing, and I will tell you if that changes."
Avoid
- "You will save…" or "guaranteed"
- "Up to…" without the number it is based on
- "Everyone switching saves…"
- "Your provider is overcharging you"
- "Limited time" when it is not
An example of claim inflation
A merchant's own statement supports a monthly saving of £60.00 in an average month, £25.00 in each of three quiet months, and an exit cost of £150.00 in the first year. Here is how the same offer can be described.
First-year saving for an example merchant. Only the last figure survives checking.
All three figures are arithmetic from the same facts. Only the last is the one the merchant will find if they check, and quoting it from the start protects everyone. See building a savings quote merchants trust and merchant statement analysis in five minutes.
How should you make claims about competitors?
Comparing your offer with a named competitor is risky. Their prices change, your information may be out of date and you may not know the full terms. Safer practice:
- Compare against the merchant's own statement, not against marketing pages.
- If you cite a competitor's published price, date it and link to it, and be sure it is current.
- Do not make claims about quality or practices you cannot support.
- Do not imply endorsement or affiliation that does not exist.
In our own research for this site, we found third-party figures that disagreed and some that were years old. If you are quoting a rate you did not agree yourself, say where it comes from and when.
What is fair to the merchant?
Fairness goes beyond avoiding false statements.
- Do not rush a merchant past a contract they have not read. Give them time and the documents.
- Tell them what a switch costs, including the exit fee and the time it takes.
- Say when staying is better. See is switching worth it.
- Do not pressure someone to sign. A good offer holds up to a night's sleep.
- Explain terms in plain language, and answer questions honestly, including about your commission if asked.
Handling the data and the documents
A statement is confidential. Use the secure intake method your ISO or acquirer approves, keep documents only as long as you need them and do not ask for card numbers. See how to ask a merchant for their statement.
What is a short claims checklist?
- [ ] Every number traces to the merchant's statement or contract.
- [ ] Both sides include every cost.
- [ ] The comparison uses the same month, turnover and basis.
- [ ] Exit costs and notice periods are shown.
- [ ] A quiet month has been tested.
- [ ] Assumptions and a validity date are on the page.
- [ ] No guarantee, no false urgency, no unsupported claim about another company.
- [ ] I have kept my workings.
For consultants
A calculator that shows every line, flags the bill check and states the assumptions on the quote makes honest claims easier, because the workings are part of the document. The checkmyrates calculator is built this way, and its estimates are labelled as estimates. Whatever tool you use, the standard is the same: if you would not be comfortable showing the merchant exactly how you got the number, do not use it.
Frequently asked questions
What counts as a misleading claim in merchant services?
Claims that omit fees, quote best cases as typical, use vague percentages, guarantee savings, create false urgency or make unsupported statements about other companies.
Can I guarantee a saving?
It is risky. Savings depend on turnover, card mix and contract terms, which can change. Describe savings as estimates based on the merchant's statement.
Should I name competitors in a comparison?
Be cautious. Compare against the merchant's own statement. If you cite a competitor's published price, date it, link to it and make sure it is current.
How do I show a fair comparison?
Use the same month and turnover, include every cost on both sides, show exit costs and state your assumptions on the quote.
What records should I keep?
The statement analysis, the assumptions, the quote you sent and any contract details, for as long as your records policy and the law require.
Where can I check the rules?
With the advertising and consumer protection regulators in your country, your ISO or acquirer's standards and your own legal adviser.
Sources and further reading
- Merchant statement analysis for agents (Honick) (opens in a new tab)
- A guide to selling merchant services (Nex) (opens in a new tab)
- Hidden card machine fees in the UK (MerchantSwitch) (opens in a new tab)
- Competition and Markets Authority (UK) (opens in a new tab)
- Australian Competition and Consumer Commission (opens in a new tab)
Figures in this guide are examples to show the method. Fees, rules and rates change, so check your own statement, contract and current rules before you decide. This is general information, not financial or legal advice.