Credit card processing cost: rates, fees and what moves them

Most small online businesses pay between the in-person and online benchmarks NerdWallet publishes: about 2.6% plus 10 cents for in-person sales and about 2.9% plus 30 cents online (NerdWallet). Beast Insights reports the average Visa and Mastercard credit rate in 2025 was 2.36%, across a year in which US merchants paid a record $198.25 billion in card fees (Beast Insights).

Take one month of statements, add up every processing fee, and enter it with your total card sales. Swipesum's published example: $2,300 in processing fees on $100,000 in card sales equals a 2.3% effective rate (Swipesum).

Three layers sit inside every card fee. Interchange goes to the cardholder's bank. Network assessments go to the card brand and are generally 0.11% to 0.15% and non-negotiable, though not always flat: Mastercard charges higher assessments on transactions over $1,000. The processor markup is the only layer most merchants negotiate (Revolution Payments).

Revolution Payments notes that the markup is only 10 to 25 percent of total fees, while interchange is 75 to 90 percent and often left unexamined. That is why the choice of processor, and how each transaction is routed, can matter more than haggling over the markup.

The fixed fee does not shrink with the order. Swipesum shows a $100 payment costing $3.20 in base processing fees and a $10 payment costing 59 cents. That makes the effective cost 3.2% on the larger payment and 5.9% on the smaller one, before any additional services or applicable charges (Swipesum). Stores with many small orders should watch the fixed fee most closely.

• Card mix: rewards and business cards carry higher interchange than basic debit.
• Order size: small tickets feel the fixed fee most, as the Swipesum example shows.
• Contract terms: one video review cites termination fees of $250 to $350 on some contracts.
• Large tickets: Mastercard charges higher assessments on transactions over $1,000.
• Processor choice: Avendo routes each transaction to the best available rate.

Learn how multi-processor payment routing works

What are typical rates for credit card processing?

Typical online rates sit near 2.9% plus 30 cents per transaction, according to NerdWallet, while in-person rates are often lower, around 2.6% plus 10 cents. Some providers use subscription pricing instead: one video review cites a plan at a flat $7.95 a month with transaction fees of 0.5%. Always compare effective rates, not headline rates.

What is interchange plus pricing?

Interchange plus pricing passes through the card network’s interchange fee at cost and adds a fixed processor markup on top, so you see exactly what each part costs. Revolution Payments says interchange is 75 to 90 percent of total card fees and the processor markup is 10 to 25 percent. Airwallex puts the typical crossover point, where interchange plus beats flat rate, at US$5,000 in monthly volume.

What is an effective rate in credit card processing?

Your effective rate is total processing fees divided by total card sales. Swipesum gives the example of $2,300 in processing fees on $100,000 in card sales, which equals a 2.3% effective rate. It is the single most useful number for comparing credit card processing companies, because it captures every fee. Use the calculator on our cost page to work out yours.

How much is the Stripe fee for $100?

Stripe publishes its current standard pricing on stripe.com/pricing, so check there for the exact figure for your country and card type. As a reference, Swipesum’s published example shows a percentage plus fixed fee structure under which a $100 payment costs $3.20 in base processing fees. International cards, currency conversion and add-ons can cost more.

What is the cheapest credit card processing for small business?

The cheapest credit card processing for a small business is the option with the lowest effective rate on your own card mix, not the lowest advertised rate. A store with many small orders is hit hardest by fixed fees; a store with large orders feels percentage fees more. Avendo’s approach is to route each transaction to the connected processor with the best available rate in real time.

Do credit card processors charge termination fees?

Some do. One video review of the best credit card processing companies cites a termination fee of $250 to $350 on certain contracts if you cancel early. Many online processors have no long term contract at all. Before signing anything, ask whether there is a contract term, an early termination fee, and any monthly minimum.

Does Avendo charge merchants a fee?

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 costs to the processor that handles each transaction, which is normal for any card payment. Ask Avendo how this applies to your volume and card mix before you switch.

Read all frequently asked questions about credit card processing