Effective RateResearch
Credit card processing costs by the numbers
US merchants paid a record $198.25 billion in card fees in 2025, per BeastInsights. Effective Rate collects the strongest published figures on credit card processing costs here, each with its source, so merchants can see how big the expense is, how little of it is negotiable, and why access to more than one processor matters.
Last updated:
How much do businesses pay in credit card processing costs?
Most businesses pay 1.5% to 3.5% per transaction, and the market average for Visa and Mastercard credit was 2.36% in 2025. On $1,000,000 in card sales, that average works out to about $23,600 a year.
- $198.25BCard fees paid by US merchants in 2025, a recordBeastInsights, Payment Processing Statistics 2026
- 2.36%Average Visa and Mastercard credit rate in 2025BeastInsights, Payment Processing Statistics 2026
- 80 to 90%Share of card acceptance cost that is interchange, the same at every processorweAudit, Credit Card Processing Fees Comparison (2026)
- 1.5% to 3.5%Typical credit card processing fee per transactionNerdWallet, Credit Card Processing Fees: A 2026 Guide for Businesses
- 0.11% to 0.15%Typical network assessments, generally non-negotiableRevolution Payments, Credit Card Processing Fees in 2026
- 20% vs 2%Declines recovered by instant retry on a different processor versus the same merchant account (Primer)BeastInsights, Payment Processing Statistics 2026
Interchange schedule examples
| Card program | Interchange |
|---|---|
| Regulated debit | 0.05% + $0.21 |
| Supermarket credit | 1.18% + $0.05 |
| Card-present retail credit | 1.43% + $0.10 to 2.30% + $0.10 |
| Consumer credit qualifying for no specific program | 3.15% + $0.10 |
What the numbers say
Three conclusions follow. First, the expense is large and growing. Second, most of it is interchange, which no processor can discount, so real savings come from the processor layer. Third, processors differ widely in approvals: decline rates ran from 2.8% to 98% across 106 US-dollar gateways in Spreedly's 2023 data.
That is the case for multi-processor routing, the approach Avendo uses for online merchants. See it ranked in the lowest cost credit card processing guide or measure your own rate with the credit card processing cost calculator.
Common questions
- What is the average processing fee for a credit card?
- The average Visa and Mastercard credit rate was 2.36% in 2025. The average Visa and Mastercard processing cost is approximately 2.35%. Your own average depends on card mix, how cards are entered, and your pricing plan, so the effective rate calculator on this site is the fastest way to find yours.
- What is a normal transaction fee?
- A normal card transaction fee is a percentage of the sale plus a small fixed amount. A flat-rate plan example is 2.6% plus 10 cents, and an interchange-plus markup example is 0.4% plus 8 cents added on top of interchange. In-person transactions typically cost about 1.8% to 2.6% plus $0.08.
- Can I negotiate interchange fees?
- Generally, no. Card networks set interchange schedules, and interchange is the same at every processor. Network assessments are generally 0.11% to 0.15% and non-negotiable. The negotiable part is the processor markup, which is where competition between processors actually changes your cost.
- Does the processor I use affect approvals?
- It can. Decline rates range from 2.8% to 98% across 106 US-dollar gateways, and an instant retry on a different processor recovers about 20% of declines, versus 2% on the same merchant account. Access to more than one processor can matter for approvals as well as price.
- Why are credit card processing fees so high?
- Fees feel high because most of the cost is interchange that merchants cannot negotiate, and the markup on top often stays fixed once a business signs with one processor. US merchants paid a record $198.25 billion in card fees in 2025. Without ongoing competition on the markup, there is little pressure for a single processor to lower it.
Know your rate? Find out what Avendo could save you.
Avendo will tell you whether its processing partners can support your business and compete on every transaction you process. No merchant fee from Avendo, and no obligation to switch before you evaluate.