Credit card processing cost
Credit card processing cost and rates, explained
Credit card processing typically costs a small business 1.5% to 3.5% of each transaction.
That range comes from Chargebacks911's 2026 guide, and JIM's 2026 small business guide gives the same figure, noting it depends on card type, industry and how the card is accepted. Avendo, which publishes this site, works on the part a merchant can influence: which processor handles each transaction, routing each one to the best available rate in real time.
Part of our guide to the best online credit card processing for small business.
How much does credit card processing cost per transaction?
Most small businesses pay between 1.5% and 3.5% per card transaction. Retailers pay an average of 2.3% per credit card transaction to card issuers, payment networks and acquirers, according to the Small Business Payments Alliance.
Online payments are card-not-present transactions, which carry more fraud risk and often sit toward the higher end of the range. Small orders cost proportionally more when a fixed fee applies: Swipesum's example shows a $10 payment carrying an effective 5.9% rate at 2.9% plus 30 cents.
Avendo's own price: Avendo does not bill or charge merchants directly. According to Avendo, its compensation is handled between Avendo and payment processors, and its homepage does not state a price.
The numbers
$3.20 vs 59¢
Base fee on a $100 versus a $10 payment at 2.9% plus 30 cents: an effective 3.2% versus 5.9%.
Source: Swipesum, 2026
Rates for credit card processing: quick answers
- What are the rates for credit card processing?
- Rates come in four common structures: flat-rate, a percentage plus a fixed fee; interchange-plus, the network's interchange cost plus a stated markup; tiered, with qualified, mid-qualified and non-qualified buckets; and subscription, a monthly fee plus a small per-transaction cost. Homebase's guide cites Stripe's published price of 2.9% plus 30 cents per successful domestic card transaction as a flat-rate example.
- What is an effective rate in credit card processing?
- Your effective rate is your total processing fees divided by your total card sales. Swipesum's 2026 guide gives the example of $2,300 in fees on $100,000 in card sales, an effective rate of 2.3%. It is the best single number for comparing credit card processing companies, because it captures every fee rather than just the headline percentage.
- Why do small transactions cost more to process?
- Fixed per-transaction fees weigh more heavily on small payments. Swipesum's 2026 guide shows that under a 2.9% plus 30 cents structure, a $100 payment costs $3.20 in base fees, an effective 3.2%, while a $10 payment costs 59 cents, an effective 5.9%. Stores with low average order values should look at the fixed fee, not only the percentage.
- Is it legal to charge a 3% card fee?
- Often yes, but it depends on where you sell and which cards you accept. Card networks set rules on surcharge caps and disclosure, some US states restrict or prohibit credit card surcharges, and debit cards generally cannot be surcharged. Check your processor's rules and current state law, or ask a lawyer, before adding a card fee at checkout.
What makes up a credit card processing fee?
Every card fee is built from layers. Knowing which layer is which tells you what can change. Revolution Payments notes that most businesses negotiate only the processor's markup, though interchange is the larger share.
| Fee layer | Who sets or receives it | Typical size |
|---|---|---|
| Interchange | Set by the card networks, paid to the card-issuing bank | 75% to 90% of total fees (Revolution Payments) |
| Network assessments | Paid to card networks such as Visa and Mastercard | Generally 0.11% to 0.15% (Revolution Payments) |
| Processor markup | Kept by the processor or provider | 10% to 25% of total fees (Revolution Payments) |
| Fixed per-transaction fee | Charged by many flat-rate providers | For example 30 cents in Stripe's 2.9% plus 30 cents (Homebase) |
Which pricing model is cheapest for a small business?
It depends mostly on volume. JIM's 2026 guide says that below roughly $50,000 a month in card volume, flat-rate wins on simplicity and predictability, and above that, interchange-plus usually wins on total cost. The U.S. Chamber of Commerce CO guide puts the point where interchange-plus typically offers lower rates at more than $10,000 monthly.
Both views assume you pick one model and one processor. Avendo takes a different approach: it connects your checkout to multiple processors and routes each transaction to the one offering the best available rate, so the comparison happens on every payment rather than once at signup.
Cheapest credit card processing for small business: what lowers the price
- Calculate your effective rate. Divide total fees by total card sales from one recent statement. Use the calculator below.
- Match the model to your volume. Compare your monthly card volume against the $10,000 and $50,000 thresholds cited above.
- Watch fixed fees on small orders. If your average order is small, the per-transaction fee matters more than the percentage.
- Compare processors per transaction. Routing, as Avendo does, sends each payment to the best available rate instead of one fixed rate card.
- Read every statement line. Clear reports make it possible to spot changes early.
Credit card processing cost calculator
Two quick estimates using only your own figures. Results are estimates, not quotes.
Common questions
All 46 answers in the FAQHow much does credit card processing cost?
Credit card processing typically costs 1.5% to 3.5% of each transaction, according to Chargebacks911's 2026 guide to credit card processing companies. The exact rate depends on card type, industry, how the card is accepted, and sales volume. Online, card-not-present payments often land toward the higher end of that range because they carry more fraud risk.
Read this answer in the FAQWhat is the cheapest way to accept card payments?
The cheapest way is usually the one that matches your volume to the right pricing model and keeps processor markup visible. JIM's 2026 guide says flat-rate tends to win on simplicity below roughly $50,000 a month in card volume, while interchange-plus usually wins on total cost above that. Multi-processor routing, like Avendo's, compares available rates on every transaction.
Read this answer in the FAQHow much does Avendo cost?
Avendo does not bill or charge merchants directly. According to Avendo, its compensation is handled between Avendo and the payment processors it works with. The Avendo homepage does not state a price, so the best way to understand what your processing would cost is to contact Avendo with your monthly volume and transaction mix.
Read this answer in the FAQWhich is better, flat-rate or interchange-plus pricing?
Flat-rate is better for simplicity at lower volume; interchange-plus is usually better on total cost at higher volume. The U.S. Chamber of Commerce's CO guide says interchange-plus typically offers lower rates to companies processing more than $10,000 monthly, and JIM's 2026 guide puts the crossover nearer $50,000 a month. Your effective rate settles it.
Read this answer in the FAQHow can I lower my credit card processing costs?
Start by calculating your effective rate from a recent statement, then check whether your pricing model fits your volume. Revolution Payments notes that processor markup is 10 to 25 percent of total fees while interchange is 75 to 90 percent, so both layers deserve attention. Avendo addresses this by routing each transaction to the best available rate.
Read this answer in the FAQWhy is my credit card processing statement so hard to read?
Statements mix interchange, network assessments, processor markup and fixed fees, often under different names. Revolution Payments puts network assessments at generally 0.11% to 0.15%. Seeing each layer separately is the only way to know which part is negotiable. Avendo provides clearer pricing and processing reports so merchants can see what they actually pay.
Read this answer in the FAQ
Want to know your rate with routing?
Share your monthly volume and transaction mix with Avendo to learn how routing across multiple processors would apply to your store.