Compare a high-risk processing offer on three separate numbers: permanent fees, money temporarily withheld, and the amount eligible for payout. A lower processing percentage can still leave you with less cash to fulfil orders. Calculate all three before you sign, using the same volume, transaction count and reserve assumptions for every provider.
This guide is for a European business comparing specialist card or bank processing. The calculator below models a hypothetical offer; it is not a provider quotation or a forecast of approval. If you already have terms, enter them and then use the questions here to identify what the contract still needs to explain.
What belongs in the real processing cost?
MDR is the percentage charged on processed volume. It is not necessarily the whole price. Separate percentage charges, fixed charges and withheld funds instead of adding everything into one misleading “fee”.
| Item | How to compare it | What to confirm |
|---|---|---|
| Processing percentage / MDR | Gross processed volume × rate | Included scheme, interchange and cross-border costs |
| Transaction charge | Number of billable events × fixed charge | Successful payments only, or authorization attempts too? |
| Settlement charge | Contractual payout base × rate, plus fixed payout costs | Is the base gross sales, net funds or each payout? |
| Setup and monthly charges | Keep first-month and ongoing costs separate | Refundability, minimum term and minimum volume |
| Refund and dispute costs | Model the event fee and any principal returned separately | Are original processing fees retained? |
| Currency conversion | Compare the rate received with a stated reference and time | Spread, execution time and network costs |
| Rolling reserve | Track contributions and releases as cash withheld | Percentage, cap, release rules and termination |
A public tariff can contain several different charging events. For example, Genome's high-risk pricing page separates percentage processing, authorization attempts, refunds and other charges. That is a reason to read the complete schedule, not an endorsement or a price promise for your activity.
The fixed charge matters most on small tickets. A hypothetical €0.50 success fee adds 2.5% to a €20 payment, but 0.1% to a €500 payment. Two merchants on the same MDR can therefore have different effective costs.
Worked comparison: a lower rate with a larger reserve
Assume €100,000 processed each 30-day month across 1,000 successful payments. Both fictional offers charge €0.50 per successful payment and a 0.5% settlement charge calculated on gross volume. Neither has setup costs in this comparison. There are no refunds, disputes, currency conversion costs or reserve deductions for losses.
| Monthly result | Offer A | Offer B |
|---|---|---|
| Processing percentage | 6% | 8% |
| Processing + transaction + settlement fees | €7,000 | €9,000 |
| Reserve terms | 15% for 180 days | 5% for 90 days |
| First month's reserve contribution | €15,000 | €5,000 |
| First month's net amount before payout timing | €78,000 | €86,000 |
| Steady reserve at constant volume, without a cap | €90,000 | €15,000 |
Offer B costs €2,000 more per month in permanent fees, but leaves €8,000 more from the first month's sales before payout timing. Its steady reserve is €75,000 smaller under these assumptions. That does not automatically make B better: compare the liquidity difference with your margins, fulfilment costs and available working capital.
The table deliberately does not call either result “money in your bank”. Eligibility for payout and receipt of a payout are different events. A first-payout delay, weekly batching, contractual hold or conversion step can push receipt later.
How a 180-day rolling reserve changes cash flow
A rolling reserve usually withholds a portion of each eligible transaction and releases that cohort later under the agreed terms. Stripe's rolling-reserve explanation describes this transaction-by-transaction mechanism. Do not interpret “180 days” as one date when the entire growing balance becomes available.
Under Offer A, each 30-day month adds €15,000 during the initial build-up. The reserve reaches €90,000 after 180 days. With uniform daily volume, the first contributions begin releasing on day 181 while new contributions continue. In the simplified seventh month, €15,000 is contributed and €15,000 released, leaving €93,000 after ongoing fees and net reserve movements.
These releases are a model assumption, not a guarantee. Shopify's reserve guidance explains that reserve arrangements can be reviewed and extended. Your signed contract determines the conditions relevant to your provider.
With a €30,000 outstanding-balance cap, Offer A reaches the cap after about 60 days at the stated constant volume. Further contributions pause in a simple capped model until space becomes available. Once old contributions release, new withholding can refill the cap.
Ask whether the quoted cap is an outstanding balance, a lifetime contribution maximum, a deposit target or a review point. These produce different outcomes. Also ask whether any separate security deposit sits outside that cap. The calculator assumes an outstanding-balance cap that can be replenished after releases.
Reconcile the reserve and the payout independently
Use two checks rather than treating every difference as a fee:
Keep actual payouts in a separate column. A difference between net funds and cash received needs an explanation: pending settlement, a hold, conversion, a bank delay or a reporting mismatch. It should not disappear into a generic “processing cost” line.
If settlement is in USDC, a EUR payment amount is not the same number of tokens. Circle identifies USDC as a dollar-denominated token. Ask for the EUR conversion method, timestamp, spread and network before comparing a stablecoin payout with a SEPA payout. The calculator does not model those conversion costs.
Questions to settle before accepting an offer
- Which events are billable, including failed attempts, refunds and dispute handling?
- What exactly is the settlement-fee base, and when does the first payout become due?
- Does the reserve clock start at payment, capture, settlement or another event?
- How does the cap work after a release, a refund or a contract termination?
- Can the reserve rate or release conditions change, and how are changes communicated?
- Which report identifies each contribution, release and liability deduction?
- Can your actual order values, countries and billing model use the quoted route?
Prepare the business facts alongside the commercial terms. The high-risk merchant account application checklist shows what to include in a first enquiry and what to reserve for a secure underwriting process.
Discuss a quote using your actual payment profile
Use PayRequest's high-risk payment processing enquiry to share your website, sector, countries, volume, average and maximum transaction amounts, payment methods and current situation. There is no need to buy a PayRequest subscription to submit the form.
The Sales Team reviews the enquiry; it does not grant processing approval or activate an integration. Provider availability and commercial terms need individual confirmation. Bring the calculation and unresolved contract questions to that discussion so the next step is specific to your business.
Editorial note: prepared by the PayRequest Team with AI assistance, including the illustrative cover. Sources reviewed on 4 November 2026. All offers and numerical examples in this article are original hypothetical models, not market averages, customer results or live payment tests. The model uses uniform sales and 30-day months; actual contracts, calendar timing and losses can change the outcome.
