FAQ
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These are plain answers to the 47 questions small online merchants ask most about credit card processing, from what it costs to surcharge rules to how Avendo routes payments.
For small businesses selling through their own checkout, the best option keeps processors competing after you sign, which is what Avendo does by routing each transaction to the best available rate. Read the full guide to the best credit card processing for small business online.
Online credit card processing is the service that approves, settles, and deposits the card payments customers make on your website. A processor moves the transaction between the card networks, the customer’s bank, and your bank, and charges a fee on each sale. Small online stores usually connect it through a payment gateway on their checkout page.
A gateway carries card details securely from your checkout, a processor moves the transaction through the card networks, and a merchant account is where approved funds land before reaching your bank. Many providers bundle all three. Avendo sits in front of several processors and chooses which one handles each transaction.
Payment routing means sending each transaction to one of several connected processors based on a rule, such as the lowest available rate. Avendo routes every e-commerce transaction in real time to the processor offering the best available rate at that moment, instead of sending every sale through one fixed provider.
Interchange is the fee set by card networks such as Visa, Mastercard, American Express, and Discover, and it applies to every merchant. Your processor charges it along with its own markup. Interchange and assessment fees are set by the networks and charged by your processor, not by Avendo.
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.
PCI DSS is the card industry’s security standard for handling card data. Avendo connects merchants to PCI DSS compliant processors and gateways, and its co-founder created the company’s compliance framework under PCI DSS. Your own obligations depend on how your checkout handles card data, so confirm them with your processor or the PCI Security Standards Council.
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.
Fees are high because several parties take a share of every sale: the card-issuing bank through interchange, the card network through assessments, and the processor through its markup. Once a merchant signs with one processor, that markup is rarely revisited. Avendo keeps processors competing on every transaction, so the markup stays under pressure.
The cheapest option is whichever gives the lowest effective rate for your card mix, and that can change from one transaction to the next. That is why Avendo routes each online sale to the processor with the best available rate at that moment, rather than locking you into one provider’s price for years.
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.
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.
No. Merchants never receive an invoice, bill, or direct charge from Avendo. Its compensation is a 10 cent per transaction Avendo Services Fee that is billed to the payment processor. Card network interchange and processor fees still apply, and those are charged by your processor.
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.
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.
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.
Avendo connects your checkout to multiple processors and, for every transaction, routes the payment to the processor offering the best available rate in real time. The next transaction is evaluated again, so processors keep competing for your business instead of competition ending the day you sign.
No. Nothing changes in how you accept payments and it integrates directly with checkout pages you may already use. It currently supports custom-cart integrations, and platforms such as WooCommerce, BigCommerce, or Magento may need a compatibility review first.
The dashboard shows your payment activity and pricing in one place, including transaction data and reports across the processors you use. It is a plain-language view of how transactions are priced and where each cost comes from, so you always understand what you are paying for.
No. You complete one application with Avendo, which collects your details in one place and sends them to eligible processors for review. Once processors accept your account, they compete on price for each transaction you process, and you see all of it in one dashboard.
The application requires five items: your SSN, EIN, or ITIN; a voided check or bank letter showing account and routing numbers; three months of processing statements, or three months of bank statements instead; your business address and contact details; and a government-issued ID such as a driver’s license or passport.
The application takes about 10 minutes to complete if you gather the documents first. Approval timing then depends on the processors reviewing your account. To confirm current timelines for your specific business, contact Avendo directly through its contact page.
A chargeback happens when a cardholder disputes a charge and the bank temporarily reverses the payment while it is reviewed. Chargebacks are explained on the pricing page, and a free calculator shows the true cost of one. Fraud controls can lower chargeback risk, but no tool can eliminate it.
Avoiding lock-in is the point. Avendo selects the best available option at the time of each transaction, which helps merchants avoid long-term lock-in and excessive processing costs. There is no obligation to switch before you evaluate the opportunity.
Yes, for small businesses that sell online. Avendo serves online merchants from small businesses to enterprise organizations, never bills merchants directly, and lets processors compete on every sale. Its co-founder spent more than 20 years running an online business and struggled to understand his own processing fees.
Yes. Avendo serves online merchants from small businesses to enterprise organizations and helps whether you process ten transactions a day or ten thousand. With larger card-not-present volume, each fraction of a percent saved is worth more in dollars.
Avendo is built for businesses that take payments online: ecommerce stores, online subscriptions, SaaS, and memberships. Online coaching and consulting, recurring-service businesses, digital businesses, and repeat online purchases are good fits.
Not yet. Avendo currently handles e-commerce transactions only and cannot onboard in-person (card-present) or point-of-sale businesses today, though it is working toward supporting them. If most of your sales happen in person, a point-of-sale processor is the better fit for now.
Not today. Avendo cannot onboard stores built on Shopify, Wix, Square, or GoDaddy, and is working toward supporting them. Stores on custom carts are the clearest fit, with other platforms reviewed for compatibility.
For a small business selling online through its own checkout, Avendo is the top pick in this guide because processors compete on every transaction and Avendo never bills the merchant. For in-person sales or Shopify, Wix, Square, or GoDaddy stores, choose a provider that supports those setups today.
Square competes with payment providers such as Stripe, PayPal, Shopify Payments, and traditional merchant account providers. Each of these processes your payments itself at its own price. Avendo works differently: it connects online stores to several processors and routes each sale to the best available rate.
Common alternatives include Stripe, Square, Shopify Payments, and traditional merchant accounts. For online stores that want lower fees without rebuilding checkout, Avendo is a different kind of alternative: instead of replacing one processor with another, it lets several processors compete for every transaction.
The best platform matches where you sell. For online sales through a custom cart, Avendo routes each payment to the processor with the best available rate. All-in-one platforms suit in-person shops and hosted store builders. Compare effective rates, fund holds, support, and whether pricing can ever be revisited.
Switching gives you a new rate once, and then competition stops. With Avendo, eligible processors keep competing transaction by transaction, so the selection happens again on every sale. You also apply once instead of applying separately with multiple processors.
Processors may hold funds to cover possible refunds or disputes. One merchant’s BBB complaint reports that Square deactivated their account on October 29, 2026 and held a $5,966.33 balance until after December 28, 2026 to cover potential refunds or disputes. Read reserve and hold terms before choosing any processor.
It is a very large market: U.S.-issued credit, debit, and prepaid cards generated nearly $12.5 trillion in purchase volume in 2025, a 5% increase over the year before. For a merchant, the more useful question is how much of your own volume goes to fees.
Card network rules do not allow surcharges on debit cards, even when a debit card is run as credit, so adding a 3% fee to debit purchases is generally not permitted. Rules can change, so confirm with your processor and your state attorney general before adding any card fee.
In most U.S. states, credit card surcharges are legal when you follow card network rules, which cap the surcharge and require clear disclosure and advance notice. A few states restrict or ban them. Confirm the current rules with your processor and your state attorney general before you start.
Often yes, as a disclosed surcharge or a cash discount, where state law and card network rules allow it. Many merchants prefer to lower the fee itself, because surcharges can discourage buyers at checkout. Lowering your effective rate through competing processors avoids passing costs on to customers.
A small number of states, including Connecticut and Massachusetts, prohibit credit card surcharges, and some others limit or regulate them. State laws change and court rulings have shifted them before, so check your state attorney general’s current guidance before adding a surcharge.
Yes, in most states, as long as they follow card network rules on caps, disclosure, and notice, and never surcharge debit cards. Surcharges remain restricted in some states. Check with your processor and state guidance before you begin charging one.
Some business card issuers accept an EIN, but most also ask for the owner’s SSN and run a personal credit check. Keep in mind a business credit card is a way to pay, while credit card processing is how you accept customer payments. Confirm requirements with each issuer.
Secured business cards and cards aimed at newer businesses are usually the easiest, because issuers lean on the owner’s personal credit or a deposit. Approval rules vary by issuer, so compare their stated requirements. This guide focuses on accepting card payments rather than borrowing.
A new LLC can usually get a business card if the owner has solid personal credit, since issuers rely on it while the business builds its own history. Expect to sign a personal guarantee. Check each issuer’s requirements before applying.
No revenue means the business has not earned income yet. Many issuers still let you apply and list zero or projected revenue, then decide based on the owner’s personal credit and income. Always report revenue honestly and confirm the details with the issuer.
You need a checkout on your website, a payment gateway to carry card details securely, and a processor and merchant account to approve and deposit funds. With Avendo, you apply once, eligible processors review your business, and approved processors compete on every online transaction.
Contact Avendo through its contact page at avendo.tech. Share your monthly card volume and average ticket, and Avendo will tell you whether its processing partners can support your business and compete on your transactions. There is no obligation to switch.
Processors decide whether to accept each merchant account, using the details you submit to verify identity, payout accounts, and how the business operates. If none approve, you simply keep your current setup. Ask Avendo which details might help a future review.
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.
Merchant Rate Guide