Merchant Rate GuideSelling online instead of in person
Online, or card-not-present, payments usually cost more. NerdWallet puts fair online rates at about 2.9% plus 30 cents, against about 2.6% plus 10 cents for competitive in-person rates.
Credit card processing costs
Credit card processing costs for small online businesses
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Most small businesses pay about 1.5% to 3.5% of each credit card sale in processing costs, and online sales sit toward the higher end because card-not-present payments carry more risk.
Credit card processing costs are the fees taken out of every card sale before the money reaches your bank. They combine network interchange, network assessments, and the processor's markup. Only the markup and extra account fees are negotiable, which is why transactions are routed to the processor with the best available rate.
How much does credit card processing cost?
Expect roughly 1.5% to 3.5% per credit card transaction. For online sales, NerdWallet calls about 2.9% plus 30 cents a fair rate, and about 2.6% plus 10 cents competitive for in-person sales.
A worked example shows: at a 2.5% effective rate, $20,000 in monthly card payments costs about $500 a month in processing fees.
Credit card processing cost, broken into its parts
Every fee on your statement belongs to one of these lines. Knowing which ones can move is the first step to paying less.
| Cost component | Set by | Can you lower it? |
|---|---|---|
| Interchange | Card networks (Visa, Mastercard, American Express, Discover) | No, applies to all merchants |
| Assessments | Card networks | No, applies to all merchants |
| Processor markup | Your processor | Yes, this is where competition helps |
| Gateway, statement, and account fees | Processor or gateway | Yes, varies by provider |
| Avendo Services Fee | Avendo | $0 to you; 10 cents per transaction billed to the processor |
Calculate your credit card processing costs
Two numbers from last month's statement give you your effective rate, the single best figure for comparing providers.
Find your effective processing rate
Use totals from one month of your card processing statement.
What raises or lowers your credit card processing costs
Monthly volume
The U.S. Chamber of Commerce CO guide says companies processing over $10,000 monthly, or negotiating interchange-plus pricing, may pay lower processing fees.
Average ticket size
A fixed per-transaction fee weighs more on small orders. A 30 cent fee is 3% of a $10 sale but only 0.3% of a $100 sale, so stores with small baskets feel fixed fees the most.
Whether pricing keeps competing
Once a single processor sets your markup, it rarely moves without renegotiating or switching. Eligible processors compete on every transaction, and the 10 cent fee is billed to the processor, not to you, per the pricing page.
Credit card processing costs at different savings levels
Small rate changes add up. On $240,000 a year in card sales, a 0.25% lower effective rate saves $600 a year, 0.50% saves $1,200, and 1.00% saves $2,400. Because processing fees come out of profit rather than revenue, each dollar saved goes straight to your margin.
To see why the negotiable share of the fee tends to stay high, read why credit card processing fees are so high. For the full picture of options, return to the guide to the best credit card processing for small business online.
Common questions
Short answers here. The full credit card processing FAQ covers 47 questions.
- How much does credit card processing cost for a small business?
- Most businesses pay roughly 1.5% to 3.5% per credit card transaction. NerdWallet describes about 2.9% plus 30 cents as a fair online rate. Your real cost depends on your card mix, average ticket, monthly volume, and pricing model.
- What is an effective processing rate?
- Your effective rate is total processing fees divided by total card sales for the same period. One example: $750 in fees on $30,000 of card payments is a 2.5% effective rate. It is the simplest way to compare what you pay across providers, and the calculator on our costs page works it out for you.
- What does 2.9% plus 30 cents mean?
- It is a flat-rate price: 2.9% of each sale plus a fixed 30 cents. On a $50 order that comes to $1.75. NerdWallet calls about 2.9% plus 30 cents a fair online rate, and the U.S. Chamber of Commerce CO guide gives an example where online store purchases cost 2.9% plus 30 cents no matter what.
- Is interchange-plus pricing better than flat-rate pricing?
- Interchange-plus often costs less once volume grows. The U.S. Chamber of Commerce CO guide says the interchange-plus model typically offers lower rates to companies processing more than $10,000 monthly. Flat-rate is simpler to read. Avendo adds a different lever on top of any model: live competition between processors on each transaction.
- How much could a lower rate save my business?
- Multiply your annual card sales by the rate reduction. On $240,000 a year in card sales, every 0.25% lower is $600 a year, and 0.50% lower is $1,200. Our free calculator shows your effective rate and these illustrations from two numbers on a monthly statement. Results are estimates, not quotes.
- Who pays Avendo’s 10 cent fee?
- The payment processor pays it. The Avendo Services Fee is 10 cents per transaction, billed to the payment processor. There are no Avendo invoices, no monthly charges, and no separate platform fees assessed by Avendo to merchants.
- Do businesses processing over $10,000 a month pay less?
- Often, yes. The U.S. Chamber of Commerce CO guide says companies processing over $10,000 monthly, or negotiating interchange-plus pricing, may pay lower processing fees. Avendo serves merchants from small businesses to enterprise organizations, and every fraction of a percent it saves is worth more as volume grows.
Find out how much your store could save on card fees
Contact Avendo with your monthly card volume and average ticket. Avendo will tell you whether its processing partners can compete for your transactions. Avendo never bills merchants, and there is no obligation to switch.