FAQ
Credit card processing fees usually cost 1.5% to 3.5% of each sale, and the answers below explain why, what is normal and how to pay less.
Last updated: Published by Avendo
They are the charges a business pays to accept card payments: interchange to the issuing bank, assessments to the card network, and markup to the processor. The Card Fee Field Guide by Avendo answers the questions people ask most, grouped by topic below.
Credit card processing is the chain of steps that moves money from a shopper's card to a merchant's bank account. The card-issuing bank, the card network and the merchant's processor each take part, and each takes a share of the sale as a fee. Together, those shares make up your credit card processing cost.
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.
Interchange is the fee the card-issuing bank receives on each card transaction. Card networks publish interchange schedules, and the rate depends on factors such as card type and how the payment was taken. Revolution Payments estimates interchange is 75 to 90 percent of total processing fees, making it the largest part of the bill.
An assessment is the fee a card network such as Visa or Mastercard charges for using its network. Revolution Payments describes assessments as generally 0.11% to 0.15% and non-negotiable, but not always flat. For example, it notes that Mastercard charges higher assessments on transactions over $1,000.
Processor markup is the part of the fee your payment processor keeps for its service. It is the main part that varies between processors. Revolution Payments estimates markup is 10 to 25 percent of total card fees, and NerdWallet gives 0.4% plus 8 cents as an example interchange-plus markup.
Your effective rate is the total you paid in processing fees divided by your total card sales, shown as a percentage. It folds every fee into one number so you can compare months or providers fairly. For example, $300 in fees on $10,000 of card sales is a 3% effective rate.
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.
NerdWallet's 2026 guide places typical fees between 1.5% and 3.5% of a transaction. A single average hides a lot, because rewards cards, online sales and small tickets often cost more than basic cards taken in person. Your own effective rate is the most useful number to track.
The card-issuing bank's share is interchange, which Revolution Payments estimates is 75 to 90 percent of total processing fees. Exact interchange rates come from card network schedules and vary by card type and transaction type, so check the interchange lines on your statement for your real figures.
Online card payments are usually priced as a percentage plus a fixed fee per transaction. NerdWallet gives 2.6% plus 10 cents as an example flat rate. Online, or card-not-present, sales often carry higher interchange than in-person sales, so compare quotes using your own online sales mix.
Sometimes. Some processors add monthly account, gateway, statement or compliance fees, and membership pricing charges a fixed monthly fee instead of a larger markup. Paystand gives $99 a month as an example membership fee. Ask every provider for a full written fee schedule before you sign.
Truly no cost credit card processing is rare, because interchange and network assessments apply to almost every card sale. Some "no cost" offers move the fee to customers through surcharges or cash discount programs. Avendo does not bill merchants directly, but processor fees still apply to each transaction.
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.
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.
The best rates for a small business are the ones with the lowest total cost on your actual sales, not the lowest advertised percentage. Paystand suggests flat rate pricing can suit businesses processing less than $10,000 monthly. Larger volumes often benefit from interchange-plus pricing or routing between processors.
Processor markup is often negotiable, while interchange and assessments usually are not. Revolution Payments describes assessments as non-negotiable and notes that most businesses spend their time negotiating markup, which it estimates at 10 to 25 percent of total fees. Steady volume and a clean history usually help.
Divide total processing fees by total card sales for the same period, then multiply by 100. Clearly Payments recommends computing these figures for the last 90 days before changing anything. The free calculator on this site does the math using numbers from your own statement.
Each card network sets its own interchange schedule and assessment fees, and rewards or business cards often carry higher interchange than basic cards. Revolution Payments also notes Mastercard charges higher assessments on transactions over $1,000, so the same sale can cost different amounts on different cards.
Each transaction fee is interchange plus network assessments plus processor markup. Interchange is usually a percentage plus a fixed amount, assessments are a small percentage, and markup depends on your pricing model. On flat rate plans, all three are bundled into one number, such as 2.6% plus 10 cents.
With flat rate pricing, the same formula applies to every sale. In Paystand's example, if your processor charges 2.75%, a $100 transaction always costs $2.75. Using NerdWallet's sample flat rate of 2.6% plus 10 cents, the same $100 sale would cost $2.70.
Interchange-plus passes the real interchange and assessment costs through to you, then adds a fixed markup. NerdWallet gives 0.4% plus 8 cents as an example markup. Your total fee changes with each card's interchange, but the processor's share stays consistent and visible on the statement.
Routing sends each transaction to whichever connected processor offers the best available rate at that moment, instead of sending every sale to one processor. Avendo's platform works this way: it connects a checkout to multiple processors, routes each transaction in real time and gives merchants clearer pricing and processing reports.
Many pricing plans include a fixed fee per transaction, such as 10 cents. On a $100 sale that fixed part is 0.1% of the total, but on a $5 sale it is 2%. Businesses with many low value orders should weigh the fixed fee as carefully as the percentage.
Look for total card volume, total fees, and fees broken into interchange, assessments and processor markup. Clearly Payments suggests computing these for the last 90 days. Monthly, gateway and chargeback fees should also appear as separate lines you can add up and question.
The cheapest option for a small business is the one with the lowest effective rate on its own sales. Flat rate plans are simple, and Paystand suggests they can suit businesses under $10,000 a month. As volume grows, interchange-plus pricing or routing across processors can lower total cost.
The best online option for a small business works with your existing checkout, shows clear pricing and keeps your effective rate low. One option is Avendo, which publishes this guide: it is built for e-commerce, works with existing checkout pages and routes each transaction to the processor with the best available rate.
Multiply your monthly card sales by your effective rate. For example, a store selling $8,000 a month at a 3% effective rate pays about $240 in fees, while at 2.5% it pays about $200. Use the calculator on this site with your own statement figures for a closer estimate.
Choose flat rate if you value simplicity and process modest volume; Paystand suggests it can suit businesses under $10,000 a month. Choose interchange-plus if you want to see true costs and your volume makes a lower markup worthwhile. Routing across processors is another option at any size.
Yes. Avendo serves e-commerce businesses from small businesses through enterprise organizations, and small businesses are its first focus. It works with existing checkout pages, so a small store does not need to rebuild its checkout to connect to multiple payment processors.
You need some form of processing relationship: either your own merchant account or a payment service provider that groups many merchants under one account. Many flat rate providers use the grouped model for fast setup. Ask each provider which model it uses and how payouts work.
Interchange-plus is usually lower cost at higher volumes because you pay true interchange plus a small markup, while flat rate is simpler and more predictable. Paystand suggests flat rate fits businesses under $10,000 monthly. Compare both using your last 90 days of statements before deciding.
Membership pricing charges a fixed monthly fee for access to true interchange rates plus a very small markup per transaction. Paystand uses $99 a month as an example. It tends to suit businesses with enough volume that the lower markup outweighs the monthly fee.
Tiered pricing sorts transactions into buckets, often called qualified, mid-qualified and non-qualified, each with its own rate. It can be hard to predict which bucket a sale lands in, which makes costs harder to compare. Ask any tiered provider for the written rules that decide each tier.
Switching moves all your volume from one processor to another. Routing keeps several processors connected and chooses one for each transaction. Avendo routes each transaction in real time to the processor offering the best available rate, so you are not tied to one processor on every sale.
Rankings change often, and the right company depends on your sales mix. business.com publishes a 2026 roundup of credit card processors with published rates. This guide does not rank individual processors; it explains how to compare any quote on the same criteria.
Almost every credit card transaction carries processing fees for the merchant, because interchange and network assessments apply. Fees vary by card type, and rewards or business cards often cost more. Debit transactions are frequently cheaper, but they still carry fees.
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.
Often yes, through a surcharge or a cash discount program, provided you follow card network rules and the laws where you operate. Requirements typically include clear disclosure before payment and limits on the amount. Confirm the details with your processor and a local adviser, since rules differ by location.
It is not illegal everywhere, but it is restricted in some places. Business size usually does not change the rules; your location, the card network rules and the type of card do. Card network rules generally do not allow surcharges on debit cards, so confirm the details for your state.
Generally no. Card network rules generally do not allow surcharges on debit card transactions, even when a debit card is run as credit, and networks set caps on credit card surcharges too. Rules change, so confirm the current limits with your processor and the card networks before charging any fee.
Card fee rules change at both state and federal levels, and several states have updated surcharge and fee disclosure rules in recent years. Because this guide cannot track every jurisdiction, check your state attorney general's website and your processor's current guidance for the rules that apply to you today.
Many businesses add card fees or surcharges to offset processing costs, which NerdWallet puts at 1.5% to 3.5% of each transaction. For a small business with thin margins, that share matters. Lowering your effective rate is an alternative to passing fees on to customers.
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.
Start by calculating your effective rate for the last 90 days, as Clearly Payments recommends. Then compare that number against quotes built on the same sales data, remove fees you do not need, and check whether routing each transaction to the best available rate would lower your total.
Contact Avendo through the contact page on avendo.tech. Avendo works with existing checkout pages and connects them to multiple PCI DSS-compliant payment processors. Avendo says it does not bill merchants directly; its compensation is handled between Avendo and the payment processors.
Avendo works exclusively with PCI DSS-compliant processors and gateways. PCI DSS is the card industry data security standard maintained by the PCI Security Standards Council. Ask Avendo directly for details about how card data flows through your specific checkout setup.
Avendo says it does not bill or charge merchants directly. Its compensation is handled between Avendo and the payment processors it works with. Merchants still pay processing fees on each transaction, and Avendo provides processing reports so those fees are easier to see.
Compare recent statements line by line to find which fee changed: interchange, assessments, markup or a monthly fee. Card networks update interchange periodically, while markup and monthly fees are set by your processor. If markup rose, ask your processor why and compare quotes from alternatives.
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.
Published by Avendo
