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Card Fee Field Guide

Credit card processing cost guide

Credit card processing cost, explained line by line

Credit card processing cost is usually 1.5% to 3.5% of each sale, according to NerdWallet's 2026 guide, and it is made of three parts: interchange, network assessments and processor markup.

Last updated: Published by Avendo

How much does credit card processing cost?

Most businesses pay between 1.5% and 3.5% of every card transaction. The Card Fee Field Guide, published by Avendo, shows where that money goes, why the same $100 sale can cost different amounts, and which steps actually lower the bill, using published figures with their sources named.

One $100 online sale

Sale amount
$100.00
Percentage fee (2.6%)
$2.60
Fixed fee per sale
$0.10
Processing cost
$2.70
You keep
$97.30
Worked example using the sample flat rate of 2.6% plus 10 cents published by NerdWallet. Your own rate may differ.

The cost of credit card processing, in four cards

Each card below stands on its own, so you can read just the one you need.

Definition

What is credit card processing cost?

Credit card processing cost is the total a business pays to accept a card payment, usually shown as a percentage of the sale plus a small fixed amount. In the Card Fee Field Guide from Avendo, we split it into three parts. Interchange goes to the bank that issued the card. Assessments go to the card network, such as Visa or Mastercard. Markup goes to the processor that handles the sale for you.

Interchange and assessments are set by banks and networks, so every processor pays them. Markup is the part that changes from one provider to the next, which is why two quotes for the same store can look so different. Your effective rate, total fees divided by total card sales, is the single number that folds all three parts together.

Numbers

Average cost of credit card processing

  • 1.5% to 3.5% of each transaction is the typical total, per NerdWallet (2026).
  • 75 to 90 percent of total fees is interchange, per Revolution Payments (2026).
  • 10 to 25 percent of total fees is processor markup, per the same source.
  • 0.11% to 0.15% is the general range for network assessments, which are non-negotiable but not always flat, per the same source.
  • $2,000 per year is saved by cutting the effective rate by 0.20% on $1,000,000 of annual card volume, per Clearly Payments (2026).

Which pricing model costs less?

Every model below is judged on the same three points: how the fee is built, a published example, and the kind of business it tends to fit. No model is cheapest for everyone.

Card Fee Field Guide by Avendo: how the main pricing models compare
Pricing modelHow the fee is builtPublished exampleTends to fit
Flat rateInterchange, assessments and markup bundled into one percentage, often plus a fixed fee.2.6% plus 10 cents (NerdWallet); 2.75% per sale (Paystand)Businesses wanting simplicity. Paystand suggests it can suit those processing less than $10,000 monthly.
Interchange-plusTrue interchange and assessments passed through, plus a fixed processor markup.Markup of 0.4% plus 8 cents (NerdWallet); in-person interchange plus 0.40% plus 8 cents (business.com)Businesses that want to see real costs and have enough volume to benefit from a lower markup.
MembershipA fixed monthly fee for access to true interchange, plus a very small markup per sale.About $99 a month as an example fee (Paystand)Higher volume businesses where the monthly fee is outweighed by the smaller markup.
Multi-processor routing (Avendo)Your checkout connects to several processors and each sale is routed to the best available rate in real time.No price is published. Avendo says it does not bill merchants directly; its compensation is handled with processors.E-commerce businesses from small stores to enterprises that want to keep their existing checkout.
Read the full flat rate vs interchange-plus comparison

How to find your real cost in four steps

  1. Pull 90 days of statements

    Clearly Payments recommends working from the last 90 days before changing anything.

  2. Add up every fee

    Include per-sale fees, monthly fees, gateway fees and chargeback fees. Leave nothing out.

  3. Divide by card sales

    Total fees divided by total card sales is your effective rate. The fee calculator does this for you.

  4. Compare like with like

    Ask other providers to price the same 90 days. Then see seven ways to lower costs.

Rates for credit card processing

Published rates for credit card processing cluster in a narrow band. NerdWallet's sample flat rate is 2.6% plus 10 cents, and business.com's 2026 roundup lists rates from 2.3% plus 10 cents, plus in-person interchange-plus pricing of interchange plus 0.40% plus 8 cents. Those headline rates are only the starting point.

What matters is your effective rate once card mix, sale size and extra fees are counted. A store with many small orders feels the fixed fee much more than one with large orders. Merchant rates for credit card processing also differ between online and in-person sales.

See what a good rate looks like

Lowest credit card processing fees: where they come from

The lowest credit card processing fees come from matching the pricing model to your sales, then keeping markup and extra fees low. Because interchange is 75 to 90 percent of the total, according to Revolution Payments, the real room to save is in the markup, the monthly fees, and how each sale is handled.

That last point is where routing fits. Instead of sending every sale to one processor, Avendo connects your existing checkout to multiple PCI DSS-compliant processors and routes each transaction to the processor with the best available rate in real time. Its processing reports show what each sale actually cost.

How to compare quotes for the lowest fees

Low cost credit card processing guides

Each guide answers one question in depth and links back here.

Who publishes this guide, and why

This guide is published by Avendo, a credit card processing platform for e-commerce businesses. Avendo serves small businesses through enterprise organizations, with small businesses first. It works with existing checkout pages, and it says it does not bill merchants directly: its compensation is handled between Avendo and payment processors.

We wrote this guide because card fees are easier to lower once you can read them. Cited figures belong to the sources named next to them, not to Avendo. Read how we chose what to include, or contact Avendo with questions about your own store.

Common questions

Short answers here. Every question is also on the full FAQ page.

How much does credit card processing cost?

Credit card processing typically costs a business 1.5% to 3.5% of each transaction's total, according to NerdWallet's 2026 guide. Where you land in that range depends on your pricing model, card mix, average sale size and whether payments are taken online or in person.

See this answer in the FAQ: How much does credit card processing cost?

What are credit card processing fees?

Credit card processing fees are the charges a business pays to accept card payments. They usually have three parts: interchange paid to the card-issuing bank, assessments paid to the card network, and a markup kept by the processor. NerdWallet's 2026 guide puts the typical total at 1.5% to 3.5% of each transaction.

See this answer in the FAQ: What are credit card processing fees?

Who has the cheapest credit card processing fees?

No single company is cheapest for every business. The lowest cost option depends on monthly volume, average ticket, card mix and your online versus in-person split. business.com's 2026 roundup lists published rates starting from 2.3% plus 10 cents, but always compare quotes against your own statement data.

See this answer in the FAQ: Who has the cheapest credit card processing fees?

What is a good CC processing rate?

A good credit card processing rate is one that puts your effective rate at the low end of the typical 1.5% to 3.5% range for your kind of sales. Compare quotes on your real sales mix, not headline rates. For interchange-plus pricing, NerdWallet cites 0.4% plus 8 cents as an example markup.

See this answer in the FAQ: What is a good CC processing rate?

Is it legal to charge a 3% card fee?

In many US states a merchant may add a credit card surcharge if it follows card network rules and state law, but some states restrict surcharges. Card networks also cap surcharge amounts and require clear disclosure. Check your state's current rules and your processor's guidance before adding one.

See this answer in the FAQ: Is it legal to charge a 3% card fee?

How do I avoid credit card processing fees?

You cannot avoid them entirely if you accept cards, but you can lower them. Audit your effective rate, cut avoidable monthly fees, negotiate markup and consider routing across processors. Clearly Payments shows that on $1,000,000 of annual card volume, cutting the effective rate by 0.20% saves $2,000 per year.

See this answer in the FAQ: How do I avoid credit card processing fees?

Want a second look at your card fees?

Avendo connects your existing checkout to multiple payment processors and routes each sale to the best available rate. Tell the Avendo team about your store and ask how it would work for you.

Contact Avendo

Published by Avendo