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Card Fee Field Guide

Small business

Credit card processing cost for small business

A small online business typically pays 1.5% to 3.5% of each card sale, so a store selling $8,000 a month at a 3% effective rate pays about $240 in fees.

Last updated: Published by Avendo

What is the cheapest credit card processing for small business?

The cheapest option for a small business is the one with the lowest effective rate on its own sales, not the lowest advertised rate. The Card Fee Field Guide by Avendo explains which pricing model tends to fit small stores, what to watch for, and how to start without rebuilding your checkout.

A small store, one month

Card sales
$8,000
At 3.0% effective rate
$240
At 2.5% effective rate
$200
Difference
$40 / month
Over a year
$480
Illustrative math by this guide. Both rates sit inside the 1.5% to 3.5% range NerdWallet reports as typical.

Credit card payment processing for small business: what matters most

Definition

What small businesses actually pay for

Every small business pays the same three parts on a card sale: interchange to the issuing bank, assessments to the card network, and markup to the processor. What changes is how they are packaged. Many small stores start on flat rate pricing because it is simple and quick to set up.

Small online stores also tend to have smaller average orders, which makes the fixed per-sale fee matter more. Read how fees are calculated for the full picture.

Numbers

Figures small businesses should know

  • 1.5% to 3.5% typical total cost per transaction (NerdWallet).
  • Flat rate can suit businesses processing less than $10,000 monthly (Paystand).
  • Example flat rate of 2.6% plus 10 cents (NerdWallet).
  • Any business with lots of sub-$50 tickets should check fixed fees (Clearly Payments).

Online credit card processing for small business: the options

Card Fee Field Guide by Avendo: options for a small online store
OptionSetup effortCost visibilityTends to fit
Flat rate providerLowOne bundled rateNew or low volume stores
Interchange-plus accountMediumEvery fee itemizedGrowing stores ready to compare markups
Membership pricingMediumMonthly fee plus small markupSteady, higher volume stores
Routing with AvendoWorks with your existing checkoutProcessing reports per transactionE-commerce stores that want each sale routed to the best available rate

Best online credit card processing for small business: getting started

  1. Know your numbers

    Find your effective rate with the calculator.
  2. List what you need

    Your checkout platform, average order size, monthly volume and any must-have features.
  3. Compare like with like

    Use the quote checklist to price the same 90 days.
  4. Ask about routing

    Avendo puts small businesses first and works with existing checkout pages. Contact Avendo to ask how it would fit your store.

Avendo says it does not bill or charge merchants directly; its compensation is handled between Avendo and the payment processors. Processor fees on each transaction still apply, and Avendo's reports are designed to make those fees clearer.

Back to the credit card processing cost guide

Common questions

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

What is the best online credit card processing for small business?

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.

See this answer in the FAQ: What is the best online credit card processing for small business?

Does Avendo work for small businesses?

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.

See this answer in the FAQ: Does Avendo work for small businesses?

Do I need a merchant account to accept cards online?

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.

See this answer in the FAQ: Do I need a merchant account to accept cards online?

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