A good processing cost comparison should not make a business owner search through pages of data to find the most important information.

That is why the summary section of Mosaic Processing’s Cost Comparison presents five key figures immediately:

• Total processing volume
• Average ticket
• Estimated monthly savings
• Estimated annual savings
• Estimated three-year savings

Together, these numbers provide a quick overview of the business’s recent processing activity and the potential financial impact of the proposed pricing.

The figures are simple to read, but each one tells an important part of the story.

Total Processing Volume: The Foundation of the Comparison

Total processing volume represents the dollar amount of card transactions included in the statement period being analyzed.

This establishes the size of the merchant’s payment activity and provides the foundation for the rest of the comparison.

Processing volume matters because many payment costs are percentage-based. A small difference in processor markup may appear insignificant when viewed as a fraction of a percentage point, but that difference can become meaningful when applied across substantial monthly volume.

For example, a reduction of 0.20% represents:

• $20 on $10,000 in processing volume
• $200 on $100,000 in processing volume
• $2,000 on $1 million in processing volume

The percentage does not change, but its financial impact grows with the business.

The summary also shows the number of transactions processed during the period. Volume and transaction count must be considered together because processing costs may include both percentage-based charges and per-transaction fees.

Two businesses could each process $100,000 per month but have very different costs if one completes 500 transactions and the other completes 5,000.

Average Ticket: Understanding the Typical Transaction

The average ticket is the average dollar amount of each transaction.

It is calculated using a simple formula:

Total processing volume ÷ number of transactions = average ticket

Average ticket helps explain how percentage-based pricing and per-item fees affect the merchant.

Consider two businesses that each process the same monthly volume:

• A professional service firm may process a small number of large payments.
• A quick-service retailer may process thousands of smaller transactions.

The retailer’s per-transaction fees may have a much greater impact because those fees are applied many more times.

The professional service firm may be more sensitive to percentage-based processor markup because each transaction carries a higher dollar value.

Neither pricing structure is automatically better for every merchant. The right structure depends on how the business actually processes payments.

That is why Mosaic does not evaluate volume alone. We also review transaction count and average ticket to understand the merchant’s full processing profile.

Estimated Monthly Savings: The Immediate Difference

Estimated monthly savings show the difference between the merchant’s current processing cost and the estimated cost under Mosaic’s proposed pricing.

The calculation is:

Current monthly processing cost − proposed monthly processing cost = estimated monthly savings

This estimate is not created by simply applying a promotional rate to total volume. It comes from repricing the activity shown on the merchant’s statement and comparing the resulting costs.

The analysis considers the expenses that would remain consistent, such as eligible interchange and card-brand costs, along with the processor-controlled charges that may change.

Those changes could include:

• Processor percentage markup
• Per-transaction fees
• Authorization charges
• Batch fees
• Monthly fees
• Gateway expenses
• Other processor-controlled costs

This allows the merchant to see not only how much the proposal may save, but also where the savings originate.

What “Lower Cost” Really Means

The percentage shown beneath the estimated monthly savings indicates how much lower the proposed total cost is compared with the current total cost for the period analyzed.

For example, if a merchant currently pays $2,700 per month and the proposed estimate is approximately $2,480, the difference is about $220.

That would represent a total cost reduction of roughly 8%.

This figure is different from a reduction in the effective rate or processor markup. It measures the estimated percentage reduction in the merchant’s total processing expense.

That distinction matters because payment pricing involves several different percentages:

• Interchange percentages
• Processor markup
• Effective rate
• Percentage reduction in total cost

A transparent comparison should label these figures clearly instead of treating them as interchangeable.

Estimated Annual Savings: Turning a Monthly Difference Into a Budget Number

Monthly savings can sound modest when considered in isolation. The annual projection shows what that difference could mean over a full year if similar activity continues.

The calculation is generally:

Estimated monthly savings × 12 = estimated annual savings

This gives the business a practical budgeting figure.

A company saving an estimated $200 per month could retain approximately $2,400 over a year. A business saving $500 per month could retain approximately $6,000.

That money could support:

• Employee wages and benefits
• Marketing
• Technology improvements
• Equipment purchases
• Inventory
• Professional services
• Facility expenses
• Cash reserves

Processing expenses may appear as one monthly line item, but their long-term effect can be meaningful.

Estimated Three-Year Savings: Showing the Long-Term Impact

The three-year estimate extends the annual projection across 36 months.

The basic calculation is:

Estimated monthly savings × 36 = estimated three-year savings

This figure helps owners and finance teams evaluate the cumulative impact of a pricing decision.

Processing agreements are not one-time purchases. Payment fees are incurred every day the business accepts cards. A seemingly small pricing difference repeats across every transaction, month, and year.

A business saving $250 per month could retain approximately $9,000 over three years. A merchant saving $1,000 per month could retain approximately $36,000.

The three-year projection helps put processor pricing into the same long-term context as other operating decisions.

These Are Projections, Not Guarantees

Annual and three-year savings figures are projections based on the statement activity being analyzed. They assume that processing behavior remains reasonably similar.

Actual results may change if the business experiences changes in:

• Sales volume
• Number of transactions
• Average ticket
• Card mix
• In-person versus online activity
• Refunds or chargebacks
• Card-network pricing
• Business model or operating locations
• Processing technology

A growing business may process more than the original statement shows. A seasonal business may have major fluctuations throughout the year. A shift toward online payments may also change the transaction profile.

That does not make the projections less useful. It means they should be understood for what they are: estimates showing how the proposed pricing would perform if applied to activity similar to the period reviewed.

Why We Show Monthly, Annual, and Three-Year Figures

Different decision-makers evaluate expenses differently.

An owner may want to know the immediate monthly impact. A controller may be focused on annual budgeting. A CFO may consider the cumulative effect across a multi-year relationship.

Showing all three figures helps everyone understand the same proposal from the perspective most relevant to their responsibilities.

It also prevents a processor from presenting only the number that sounds most impressive.

The monthly estimate shows the underlying difference. The annual and three-year figures show how that monthly difference accumulates. All three should connect through straightforward math.

The Summary Is a Starting Point

The top of the comparison is designed to answer the first set of questions quickly:

• How much does the business process?
• How many transactions does it complete?
• What is its average ticket?
• What is the estimated monthly difference?
• What could that difference mean over time?

But the summary is not meant to replace the detailed analysis.

The sections that follow explain the current costs, proposed pricing, card-brand breakdown, processor markup, effective rate, and specific sources of the estimated savings.

The summary tells the merchant what the potential result may be. The supporting sections show how that result was calculated.

Clear Numbers Create Better Conversations

A processing proposal should not require a leap of faith.

The merchant should be able to connect its actual business activity to the proposed pricing and understand the potential impact in monthly, annual, and long-term terms.

That is what this summary section is designed to accomplish.

It converts payment-processing data into business information that owners and financial decision-makers can understand, question, and verify.

At Mosaic Processing, we believe a merchant should see more than a rate. It should see the full financial picture—and understand exactly what the numbers mean.