Credit card processing questions, answered plainly.

Usually it’s a combination: the types of cards your customers use (rewards and business cards often cost more), how transactions are taken (keyed and online typically cost more than chip or tap), your pricing model, your processor’s markup, and monthly or equipment fees. A statement review shows which of these apply to you.

Your total processing fees for the month divided by your total card volume. Hypothetical example: $350 in fees on $10,000 in volume is a 3.5% effective rate.

Fees set by the card networks and paid to the card-issuing bank. They vary by card type and transaction type. Processors add their own markup and fees on top.

The portion of your cost charged by your processor or provider above pass-through costs like interchange and assessments.

Look for total volume, total fees, the pricing model, per-transaction fees, and monthly charges. Or send it over and we’ll walk you through it.

With traditional processing, you absorb the cost. With a cash discount program, the posted card price accounts for some or all of the processing cost, and cash customers get a discount.

A structure where you and the posted card price share the processing cost. 50/50 is just one hypothetical split; actual structures depend on approved program terms, card-brand rules, and California law.

Customers who pay by card see a non-cash adjustment in the posted card price, and cash customers receive a discount. Your cost may be substantially reduced or potentially offset, subject to approved program terms. It’s not “free processing.”

No. They’re structured differently, and rules vary by state and card brand. California has specific rules on surcharges and price disclosure, so programs must be reviewed and set up according to approved terms and applicable requirements. This isn’t legal advice.

Showing both a cash price and a card price. It’s often discussed alongside cash discount programs, and requirements vary by card brand and state.

It depends on underwriting and equipment. We don’t promise timelines, but we’ll keep you updated at every step.

All applications are subject to underwriting by the processor and bank. Approval isn’t guaranteed.

Not always. It depends on your current equipment, the program, and compatibility. We’ll go over equipment options and terms before you decide.

Yes. It’s complimentary, with no obligation.

Card numbers, customer data, or any login credentials. You can black out your bank account number.

Drew Lutzke, directly.

Lutzke Merchant Services is local to the San Fernando Valley (home base is Winnetka, 91306) and serves businesses across Southern California: Los Angeles, Ventura County, Santa Clarita, the Antelope Valley, Pasadena and the San Gabriel Valley, Long Beach and the South Bay, Orange County, the Inland Empire, and San Diego. See all service areas.

In the San Fernando Valley area, usually yes: Drew can come by and review your statement with you. Elsewhere in Southern California, reviews happen by phone, video, and email, and in-person meetings are by arrangement.

Established businesses, typically processing $20,000 or more a month in card sales. Smaller businesses are still welcome to ask.