How Leaders Payment Processing Works and What It Costs

What Leaders Payment Processing Does

Leaders Payment Processing is a payment processor that handles credit card, debit card, and ACH transactions for businesses. The company sits between your business bank account and the customer's card or bank account, moving money through the payment networks (Visa, Mastercard, American Express, Discover) and depositing funds into your account after taking a fee.

Leaders does not issue merchant accounts themselves — they partner with acquiring banks and payment networks to let businesses accept cards. They handle the technical side: the software that reads the card, the connection to payment networks, the fraud checks, and the settlement (the daily or weekly deposit of money into your business bank account minus their cut).

If you are considering Leaders or already use them, you need to understand what they charge, how long money takes to reach your account, what happens when a customer disputes a charge, and what your other options are.

Key Takeaways

• Leaders charges a percentage of each transaction (interchange rate) plus a flat per-transaction fee, and these rates vary by card type and whether the card is present or not.
• Settlement time — how long before money lands in your account — is typically one to two business days, but can be longer if fraud flags appear or if you process high-volume transactions.
• Chargebacks (customer disputes) cost you the transaction amount plus a chargeback fee, and too many chargebacks can result in your account being closed.
• Leaders' pricing is not transparent on their public website, so you must request a rate sheet or contract to compare their costs against other processors like Square, Stripe, or your bank's own processor.
• Month-to-month contracts with Leaders are common, but some plans lock you in for a year or longer, so read the termination clause before signing.

How Leaders Charges You: Interchange, Markups, and Fees

Leaders makes money three ways: interchange fees (set by Visa and Mastercard, not by Leaders), markups (Leaders' own percentage on top of interchange), and flat fees per transaction. A typical Leaders rate sheet shows something like 2.19% + $0.30 per transaction for a standard Visa debit card, but the exact rate depends on your industry, your sales volume, and the type of card being used.

Interchange rates are not negotiable — Visa and Mastercard set them and they change several times a year. What Leaders can negotiate is their markup. A business processing $50,000 a month might pay 0.50% markup, while a business processing $5,000 a month might pay 1.50% markup. This is why comparing rate sheets matters: two processors quoting the same interchange rate can have very different total costs.

Beyond per-transaction fees, Leaders may charge monthly statement fees, PCI compliance fees (for handling card data securely), batch fees (if you process in multiple batches per day), or gateway fees if you use their software to accept payments online. These are often buried in the contract, so ask for a complete fee schedule before you commit.

Settlement: When Your Money Actually Arrives

Settlement is the day your processed transactions land in your business bank account. Leaders typically settles once per day, usually in the afternoon, and the money reaches your bank account the next business day. So a transaction processed on Monday afternoon might settle Tuesday afternoon and arrive in your account Wednesday morning.

Settlement can be delayed if Leaders flags a transaction as high-risk (a large order, a card from a different country, a pattern that looks like fraud). In those cases, Leaders may hold the funds for 24 to 72 hours while they investigate. If you process a very high volume in a single day, settlement may also be delayed because the processor needs time to batch and verify all the transactions.

Some Leaders plans offer next-day settlement for an extra fee, but this is rare and usually only available to established businesses with low chargeback rates. Ask about settlement timing before you sign — if you need money faster, a processor like Square or Stripe may be a better fit.

Chargebacks: What Happens When a Customer Disputes a Charge

A chargeback occurs when a customer tells their bank or credit card company that they did not authorize a charge or did not receive what they paid for. The customer's bank reverses the transaction, pulls the money back from Leaders, and Leaders pulls it back from your account. You also pay a chargeback fee — usually $15 to $100 depending on the card type and the reason for the dispute.

You can dispute a chargeback by providing proof: a signed receipt, a shipping confirmation, an email from the customer, a photo of the delivered item. Leaders will submit this evidence to the customer's bank, but the bank makes the final decision. If you lose, the money stays gone and you keep paying the chargeback fee.

If your chargeback rate climbs above a certain threshold — usually 1% of your total transactions — Leaders can place your account on probation, require you to hold a reserve (money they hold back from each settlement), or close your account entirely. This is why keeping good records and communicating with customers about what they are buying matters.

How Leaders Compares to Other Processors

Leaders is one of many payment processors, and the choice between them often comes down to cost, settlement speed, and the type of business you run. Square and Stripe are transparent about their rates on their websites (2.6% + $0.10 for online, 2.7% + $0.05 for in-person as of this writing, though rates change). Your own bank may offer payment processing at rates competitive with or better than Leaders, especially if you maintain a high balance.

Leaders may be cheaper for certain industries — some processors specialize in high-risk businesses like e-commerce or subscription services and offer better rates for those verticals. But because Leaders does not publish rates publicly, you have to call and ask for a quote, which makes comparison harder. If you are considering Leaders, request a detailed rate sheet and compare it line-by-line against at least two other processors before deciding.

The contract terms also matter. Some processors lock you in for a year with an early termination fee; others are month-to-month. Some charge you to close your account; others do not. Read the termination clause and the fee schedule in full before you sign anything.

What to Ask Leaders Before You Sign

Before you commit to Leaders, get answers to these questions in writing:

1. What is the complete rate sheet? Ask for rates broken down by card type (Visa debit, Visa credit, Mastercard, American Express, Discover) and by transaction type (in-person, online, phone, recurring).
2. What are all the fees? Statement fees, PCI fees, batch fees, gateway fees, monthly minimums, and any other charges not listed in the per-transaction rate.
3. How long is the contract? Month-to-month, one year, or longer? What is the early termination fee if you leave before the contract ends?
4. What is the settlement schedule? When do transactions settle, and when does money hit your bank account? Are there any holds or delays for high-risk transactions?
5. What is the chargeback threshold? At what chargeback rate does your account go on probation or get closed?
6. Do you require a reserve? Some processors hold back a percentage of each settlement as a safety net. Ask if this applies to you and under what conditions.

Frequently Asked Questions

Can I switch away from Leaders if I do not like their rates?

Yes, but check your contract first. Most month-to-month plans let you leave with 30 days' notice and no penalty. If you are locked into a longer contract, you may owe an early termination fee — often $300 to $500. Once you leave, your old payment terminal stops working and you will need to set up a new one with your new processor, which takes a few days.

What happens if I have a high chargeback rate?

Leaders will first send you a warning. If chargebacks stay high, they may require you to hold a reserve — money they keep from each settlement to cover future chargebacks. If the rate climbs even higher, they can close your account. Once an account is closed for chargebacks, other processors may be reluctant to work with you, so prevention (good records, clear communication with customers) is critical.

Does Leaders offer payment terminals or online checkout software?

Leaders can provide both, but they charge extra for the hardware or software. A physical terminal might cost $200 to $500 upfront plus a monthly fee. Online checkout software (a payment gateway) usually costs $10 to $30 per month. Ask whether these are included in your plan or billed separately.

How long does it take to get set up with Leaders?

Initial setup usually takes three to five business days once you submit your application and supporting documents (business license, tax ID, bank account details). You will need to provide proof of your business address and personal identification. If Leaders flags your application as higher-risk, setup can take longer.

What if a customer claims they never received their order?

If you have a tracking number showing delivery, you can submit that as proof to dispute the chargeback. If you do not have tracking or proof of delivery, you will likely lose the chargeback and lose the money. This is why shipping with signature confirmation or tracking is important for high-value orders.