Primary payment processor raises pricing at contract renewal

Risk statement. The processor contract renews on 1 December. They have signalled a move to interchange-plus pricing, which on our transaction mix adds an estimated 0.4% to processing cost, roughly $180k annually. We have no second integrated processor.

Trigger / early warning. Written notice of a pricing change, or renewal terms arriving without a rate guarantee.

Consequence if realised. Direct and permanent margin impact. Switching processors mid-year is a six-week engineering project we have not planned for.

Current response. Transfer, then mitigate. Push for a rate cap in the renewal, and reduce switching cost by integrating a second processor behind an abstraction layer.